When can an individual offset losses against non-trading income?

In the context of the United Kingdom's tax regulations, individuals can offset losses against non-trading income under specific conditions. The correct choice refers to the current provisions that allow for the offsetting of losses against an individual’s non-trading income to the higher of £50,000 or 25% of their adjusted total income.

This approach is designed to provide significant tax relief to individuals who incur losses in their trade or business activities. It's important to recognize that the threshold of £50,000 or the 25% calculation is established to ensure that only those with substantial non-trading income or high adjusted total income benefit from this offset, thereby targeting relief more effectively.

The offset is subject to limits to prevent undue advantage taking; thus, individuals cannot simply offset any amount of loss against their non-trading income without these constraints. This structured limitation encourages balance in tax relief and avoids potential abuse of the system by those with lower income levels.

The other options suggest either arbitrary limits or conditions that are inconsistent with the existing legislation, or misstate the types of income against which losses can be offset. As such, the correct understanding aligns with option B, which accurately reflects the statutory provisions governing loss offsetting in the context of individual taxation.