Limits on Income Tax reliefs - Guidance
HMRC has published guidance on the limits on Income Tax reliefs enacted in the Finance Act 2013 and having effect from the tax year 2013-14.
The limit applies to certain reliefs, which were previously unlimited and that are available to reduce an individual’s total income and is the greater of £50,000 or 25% of the individual’s adjusted total income for a tax year.
The published guidance explains, with supporting examples, how the limit is calculated, the measure of income used to calculate the limit, which reliefs are subject to the limit, and how different circumstances are treated.