BIM86017 - TMIA - Computation: Partial Relief: Miscellaneous Income
If the individual qualifies for partial relief and their relevant income for the tax year is all from Miscellaneous income, then the profit for the tax year is calculated using the following steps:
Step 1 – calculate total Miscellaneous income
Calculate the total amount of miscellaneous income for the tax year.
Step 2 – subtract the deductible amount from receipts
Then subtract the trading allowance from the total miscellaneous income calculated in Step 1 above. You cannot also deduct any expenses that would otherwise be allowable. This will give a figure of taxable miscellaneous income.
The amount subtracted under this step cannot be used to produce a miscellaneous income loss.