Income Tax Act 2007

24Reliefs deductible at Step 2

(1)If the taxpayer is an individual, the provisions referred to at Step 2 of the calculation in section 23 are—

(a)the following—

• section 72 (early trade losses relief),

• Chapter 6 of Part 4 (share loss relief),

• Chapter 3 of Part 8 (gifts of shares, securities and real property to charities etc),

• sections 457 and 458 of this Act or section 266(7) of ICTA (payments to trade unions or police organisations),

• section 193(4) of FA 2004 (pension schemes: relief under net pay arrangement: excess relief), and

• section 194(1) of FA 2004 (pension schemes: relief on making of claim), and

(b)the following—

• section 64 (trade loss relief against general income),

• section 83 (carry-forward trade loss relief),

• section 89 (terminal trade loss relief),

• section 96 (post-cessation trade relief),

• section 118 (carry-forward property loss relief),

• section 120 (property loss relief against general income),

• section 125 (post-cessation property relief),

• section 128 (employment loss relief against general income),

• section 152 (loss relief against miscellaneous income),

• Chapter 1 of Part 8 (interest payments),

• Chapter 4 of Part 8 (annual payments and patent royalties),

• section 574 (manufactured dividends on UK shares: payments by non-companies),

• section 579 (manufactured interest on UK securities: payments not otherwise deductible),

• Part 2 of CAA 2001 (plant and machinery allowances), in a case where the allowance is to be given effect under section 258 of that Act (special leasing of plant and machinery),

• Part 3 of CAA 2001 (industrial buildings allowances), in a case where the allowance is to be given effect under section 355 of that Act (buildings for miners etc: carry-back of balancing allowances),

• Part 8 of CAA 2001 (patent allowances), in a case where the allowance is to be given effect under section 479 of that Act (persons having qualifying non-trade expenditure),

• section 555 of ITEPA 2003 (deduction for liabilities related to former employment),

• section 446 of ITTOIA 2005 (strips of government securities: relief for losses),

• section 454(4) of ITTOIA 2005 (listed securities held since 26 March 2003: relief for losses: persons other than trustees), and

• section 600 of ITTOIA 2005 (relief for patent expenses).

(2)In any other case, the provisions referred to at Step 2 of the calculation in section 23 are—

(a)the provisions listed in subsection (1)(b), and

(b)section 505 (relief for trustees of unauthorised unit trust).