Expenditure relating to exempt income: allowed as direct costs plus a percentage of average investment value, subject to a cap.

The allowable expenditure in relation to income not includible in total income comprises: (a) expenditure directly relating to such excluded income; and (b) an amount equal to a percentage of the annual average of the monthly averages of the opening and closing balances of the value of investments producing such excluded income. The aggregate of these amounts cannot exceed the total expenditure claimed by the assessee.

---

---

---