{
  "url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-537",
  "json_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005/section-537.json",
  "legislation": "ukpga/2005/5",
  "legislation_title": "Income Tax (Trading and Other Income) Act 2005",
  "legislation_url": "https://openlegislation.uk/income-tax-trading-and-other-income-act-2005",
  "path": "section/537",
  "kind": "section",
  "number": "537",
  "heading": "Top slicing relieved liability: two or more chargeable events",
  "text": "To calculate an individual's relieved liability for the purposes of section 535(1) for a tax year for which the individual is liable for tax on gains from two or more chargeable events—\nStep 1\nCalculate the total annual equivalent by adding together the annual equivalents for each of the chargeable events, found as specified in step 1 in section 536(1).\nStep 2\nFind the total relieved liability on the total annual equivalent by—\n(a) calculating the individual's liability to income tax (if any) on the total annual equivalent, on the basis that—\n(i) the total gains from the chargeable events are limited to the amount of the total annual equivalent, ...\n(ii) the highest part assumptions apply, and\n(iii) in determining the amount of the individual’s personal allowance under section 35 of ITA 2007 (but not the amount of any other relief or allowance), it is assumed that the total gains from the chargeable events are equal to the amount of the total annual equivalent, and\n(b) subtracting the amount of income tax at the savings basic rate on the total annual equivalent which the individual is treated as having paid under section 530(1).\nStep 3\nMultiply the total relieved liability on the total annual equivalent by the total gains charged to tax under this Chapter for the tax year in respect of all the events.\nStep 4\nDivide the result of step 3 by the total annual equivalent.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Word in s. 537 omitted (with effect in relation to the tax year 2019-20 and subsequent tax years) by virtue of Finance Act 2020 (c. 14), s. 37(4)(a)(5) (with s. 37(6))"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 537 inserted (with effect in relation to the tax year 2019-20 and subsequent tax years) by Finance Act 2020 (c. 14), s. 37(4)(b)(5) (with s. 37(6))"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 537 substituted (for the tax year 2027-28 and subsequent tax years) by Finance Act 2026 (c. 11), s. 6(8), Sch. 1 para. 48"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2005/5/section/537",
    "retrieved_at": "2026-10-29T09:16:32.370392+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}