[24A Limit on Step 2 deductions]
Income Tax Act 2007 (2007 c 3) | Legislation

[24A  Limit on Step 2 deductions]

[(1)     If the taxpayer is an individual, there is a limit on certain deductions which may be made for the tax year at Step 2.

(2)     The limit is determined as follows.

(3)     Amount A must not exceed amount B.

(4)     Amount A is—

(a)     the deductions for the tax year at Step 2 for the reliefs listed in subsection (6) taken together, less

(b)     so much of those deductions as fall within subsection (7).

(5)     Amount B is—

(a)     £50,000, or

(b)     if more, 25% of the taxpayer's adjusted total income for the tax year (see subsection (8)).

(6)     The reliefs are—

(a)     relief under section 64 (trade loss relief against general income);

(b)     relief under section 72 (early trade losses

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