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

Election for partial relief

Section 783BK sets out the rules for electing to receive partial relief where an individual's property income exceeds their property allowance for a tax year.

• An individual whose relevant property income exceeds their property allowance for a tax year may elect to receive partial relief instead of full relief
• Partial relief allows the individual to deduct the property allowance from their property income when calculating taxable profits, rather than claiming full exemption
• The election must be made no later than the first anniversary of the normal self-assessment filing date for the relevant tax year
• The election applies to all of the individual's relevant property businesses for the tax year in question