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

Relief under this Chapter

Section 783B provides an overview of the property allowance relief available to individuals who earn income from a relevant property business, explaining the two forms of relief and when they apply.

• Individuals earning income from a relevant property business may be entitled to tax relief under this chapter, with the form of relief depending on whether their property income exceeds their property allowance.
• Where relevant property income does not exceed the property allowance, the income is completely exempt from income tax — unless the individual elects otherwise (full relief).
• Where relevant property income exceeds the property allowance, the individual may elect to use an alternative calculation method, effectively deducting the property allowance instead of actual expenses (partial relief).
• The relief is subject to certain exclusions and conditions that may prevent it from being available in specified circumstances.