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HMRC internal manual

Business Income Manual

TMIA - Computation: Full Relief

Individuals will qualify for full relief if the total of their relevant income from all relevant trades they carry on during the year and all their Miscellaneous income, does not exceed the trading allowance.

 

If an individual qualifies for full relief and their relevant income includes receipts from one or more relevant trades then the profits or losses of each and every relevant trade for the tax year are treated as nil. For example if an individual has relevant income from one relevant trade and calculates their taxable profits in the normal way after the deduction of allowable expenses then full relief cannot apply to the relevant income of a second relevant trade.

 

If an individual qualifies for full relief and their relevant income includes Miscellaneous income then the all their Miscellaneous income and any expenses associated with that income are treated as nil. 

 

Individuals can choose to elect for full relief not to apply by completing their Self Assessment returns following the guidance included in the SA Notes .

 

Relevant income is defined at BIM86007, and more information regarding elections can be found at BIM86025.

 

For an illustration of full relief see at BIM86072.