Section 783AK | Deductible amount: splitting of trading allowance

(1)This section applies where the individual's relevant income for the tax year includes—

(a)receipts of a relevant trade, and

(b)receipts of any other relevant trade or miscellaneous income (or both).

(2)The references in section 783AI and (where it applies) section 783AJ to the deductible amount are to amounts which, in total, equal the individual's trading allowance for the tax year.

(3)The question of how to allocate the individual's trading allowance for the tax year for the purposes of subsection (2) is to be decided by the individual, subject to subsections (4) and (5).

(4)The deductible amount in respect of a relevant trade must not be such that the amount given by step 2 of section 783AI(2) is negative.

(5)The deductible amount in respect of miscellaneous income must not be such as to result in the individual making a loss in the transactions giving rise to the miscellaneous income.