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HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
Updated
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Income: General Deductions

Deductions from Income of Claimant

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Regulation 3(7)

Allowable deductions from the total income (see TCTM04001) are

  • banking charge or commission payable in converting into sterling a payment of income which is made in a currency other than sterling.
  • the grossed up amount of any qualifying donation to charity (within the meaning of Chapter 2 of Part 8 of the Income Tax Act 2007 (gift aid)) made by the claimant(s).
  • the amount of any contribution made by the claimant, or in the case of a joint claim, by either or both of the claimants to a registered pension scheme together with the amount of any tax relief due on those contributions.

The Tax Credits (Definition and Calculation of Income) Regulations 2002, Regulation 3(8)

If a claimant has sustained a loss in relation to a UK property business or an overseas property business and is entitled to property loss relief by satisfying the requirements of section 120 of the Income Tax Act 2007 and the amount of that relief exceeds the property income (TCTM04006), or foreign income (TCTM04007) for tax credits purposes the amount of that excess relief shall be deducted from the total income for tax credits purposes.