Income Tax Act 2007 section 26

Tax reductions

Section 26 lists all the specific tax reductions that may be deducted at Step 6 of the income tax calculation set out in section 23, distinguishing between those available to individual taxpayers and those available in other cases such as trusts.

• For individual taxpayers, a wide range of tax reductions may be claimed, including married couple's allowance, transferable tax allowance, Enterprise Investment Scheme (EIS) relief, Seed Enterprise Investment Scheme (SEIS) relief, social investment relief, Venture Capital Trust (VCT) relief, and community investment tax relief.
• Individuals may also claim reductions for non-deductible loan interest on residential property partnerships, qualifying maintenance payments, spreading of patent royalty receipts, interest on loans to buy life annuities, non-deductible dwelling-related loan costs, top slicing relief, and relief for deficiencies on life insurance policies.
• Both individuals and other taxpayers may claim reductions for relief on distributions repaying shares, relief where foreign estates have borne UK income tax, and double taxation relief (whether under a treaty arrangement or unilaterally for foreign tax paid).
• For non-individual taxpayers such as trusts, additional reductions are available for non-deductible dwelling-related loan costs on accumulated or discretionary trust income from property businesses, and for trusts with a vulnerable beneficiary.