Section 274A | Reduction for individuals: entitlement ^F1

(1)If for a tax year an individual has—^F1

(a)a relievable amount in respect of a property business, or^F1

(b)two or more relievable amounts each in respect of a different property business,^F1

the individual is entitled to relief under this section for that year in respect of that relievable amount or (as the case may be) each of those relievable amounts.

(2)An individual has a relievable amount for a tax year in respect of a property business if for that year the individual has any one or more of the following in respect of that business—^F1

(a)a current-year amount;^F1

(b)a current-year estate amount;^F1

(c)a brought-forward amount.^F1

(3)An individual's relievable amount for a tax year in respect of a property business is the total of—^F1

(a)the individual's current-year amount (if any) for that year in respect of that business,^F1

(b)the individual's current-year estate amounts (if any) for that year in respect of that business, and^F1

(c)the individual's brought-forward amount (if any) for that year in respect of that business.^F1

(4)An individual has a current-year amount for a tax year in respect of a property business if—^F1

(a)an amount (“A”) would be deductible in calculating the profits for income tax purposes of that business for that year but for section 272A,^F1

(b)the individual is liable for income tax on N% of those profits, where N is a number—^F1

(i)greater than 0, and^F1

(ii)less than or equal to 100, and^F1

(c)that liability is not under Chapter 6 of Part 5 (estate income),^F1

in which event the individual's current-year amount for that tax year in respect of that business is equal to N% of A.

(5)An individual has a current-year estate amount for a tax year (“the current year”), in respect of a property business and a particular deceased person's estate, if—^F1

(a)an amount (“A”) would, but for section 272A, be deductible in calculating the profits for income tax purposes of that business for a particular tax year (“the profits year”), whether that year is the current year or an earlier tax year,^F1

(b)the personal representatives of the deceased person are liable for income tax on N% of those profits, where N is a number—^F1

(i)greater than 0, and^F1

(ii)less than or equal to 100,^F1

(c)the individual is liable for income tax on estate income treated under Chapter 6 of Part 5 as arising in the current year from an interest in the estate, and^F1

(d)the basic amount of that estate income consists of, or includes, an amount representative of E% of the personal representatives' N% of the profits of the business for the profits year, where E is a number—^F1

(i)greater than 0, and^F1

(ii)less than or equal to 100,^F1

in which event the individual's current-year estate amount for the current tax year, in respect of that business and estate and the profits year, is equal to E% of N% of A.

(6)As to whether an individual has a brought-forward amount for a tax year in respect of a property business, see section 274AA(4).^F1

(7)In this section and section 274AA—^F1

“estate income”, and

“basic amount” in relation to any estate income,

have the same meaning as in Chapter 6 of Part 5 (see sections 649 and 656(4)).