Income Tax (Trading and Other Income) Act 2005 section 783AC

The individual's "relevant income"

Section 783AC defines what counts as an individual's "relevant income" for the purposes of the trading and property income allowances chapter.

• Relevant income is the sum of receipts from the individual's relevant trades and their miscellaneous income for the tax year
• Trade receipts are all amounts that would normally be brought into account as income when calculating the trade's profits for the year
• Receipts are determined under normal accounting rules (GAAP or cash basis) and do not include items such as adjustment income or post-cessation receipts
• The period over which trade receipts are recognised follows the standard basis period rules