Textual Amendments
F1Pt. 6A inserted (16.11.2017) (with effect in accordance with Sch. 3 para. 13 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 3 para. 1
(1)This section applies if—
(a)an individual qualifies for partial relief for a tax year, and
(b)the individual's relevant income for the tax year consists of or includes receipts of one or more relevant trades.
(2)The profits or losses for the tax year of each of the individual's relevant trades are given by taking the following steps—
Step 1 Calculate the total of all the amounts which would, apart from this Chapter, be brought into account as a receipt in calculating the profits of the trade for the tax year.
Step 2 Subtract the deductible amount.
Step 3 Subtract from the amount given by step 2 any deduction for overlap profit allowed in calculating the profits of the trade for the tax year under section 205 (deduction for overlap profit in final tax year) or section 220 (deduction for overlap profit on change of accounting date).
(3)Subject to section 783AK, the deductible amount is equal to the individual's trading allowance for the tax year.
(4)“Overlap profit” has the same meaning in this section as it has in Chapter 15 of Part 2 (see sections 204 and 204A).]