Part 5Employment income: deductions allowed from earnings
Chapter 1Deductions allowed from earnings: general rules
General rules
329Deductions from earnings not to exceed earnings
1
The amount of a deduction allowed under this Part may not exceed the earnings from which it is deductible.
F41A
If the earnings from which a deduction allowed under this Part is deductible include earnings that are “excluded” within the meaning of section 15(1A)—
a
the amount of the deduction allowed is a proportion of the amount that would be allowed under this Part if the tax year were not a split year, and
b
that proportion is equal to the proportion that the part of the earnings that is not “excluded” bears to the total earnings.
2
If two or more deductions allowed under this Part are deductible from the same earnings, the amounts deductible may not in aggregate exceed those earnings F1(or, in a case within subsection (1A), the part of those earnings that is not “excluded”) .
3
If deductions allowed otherwise than under this Part fall to be allowed from the same earnings as amounts deductible under this Part, the amounts deductible under this Part may not exceed the earnings F2(or, in a case within subsection (1A), the part of the earnings that is not “excluded”) remaining after the other deductions.
4
Subsections (1) and (2) do not apply to a deduction under section 351 (expenses of ministers of religion), and subsection (3) applies as if such a deduction were allowed otherwise than under this Part.
5
This section is to be disregarded for the purposes of the deductibility provisions (see section 332).
6
See also F3section 128 of ITA 2007 (which provides that where a loss in an employment is sustained, relief may be given against other income).