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

Deductible amount: splitting of property allowance

Section 783BI explains how an individual who has two relevant property businesses (typically a UK property business and an overseas property business) can split the property allowance between them when using partial relief.

• Where an individual has property income from two relevant property businesses, the property allowance can be split between them
• The total deductible amounts claimed across both businesses must equal the individual's property allowance for the tax year
• The individual can choose how to allocate the property allowance between the two businesses
• The allocation must not result in a loss being created in either property business