Types of relief

There are two types of relief available to an individual on income of a relevant trade and miscellaneous income. The type of relief depends on whether the individual's relevant income exceeds the individual's trading allowance:

(1)If the individual's relevant income does not exceed the individual’s trading allowance, the income is not charged to income tax (unless the individual elects otherwise).

(2)If the individual's relevant income does exceed the individual’s trading allowance, the individual may elect for alternative methods of calculating such income.

Relief is excluded altogether in certain circumstances - see further at ¶229-100.

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