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

Partial relief: alternative calculation of property profits: introduction

Section 783BG sets out the conditions under which an individual qualifies for partial relief by using an alternative method to calculate their property business profits, where their property income exceeds the property allowance.

• The individual must have relevant property income for the tax year in question.
• The relevant property income must exceed the individual's property allowance for that year.
• The individual must have made a formal election for partial relief under section 783BK.
• When all three conditions are met, the individual can use the alternative calculation method instead of the normal property profit computation.