Income Tax (Trading and Other Income) Act 2005 section 783AL

Election for full relief not to be given

Section 783AL allows an individual to elect out of the automatic full trading allowance relief for a tax year and sets out the time limit for making that election.

• Individuals can choose not to receive the automatic full trading allowance relief that would otherwise exempt their trading or miscellaneous income from tax.
• This election might be beneficial where the individual has deductible expenses exceeding the £1,000 trading allowance and wishes to claim those instead.
• The election must be made no later than one year after the normal self-assessment filing date for the tax year in question.
• The election applies only to the specific tax year for which it is made; a fresh election is needed for each subsequent year if required.