Part 13Tax avoidance
Chapter 5Avoidance involving trading losses
Introduction
790Overview of Chapter
1
This Chapter imposes charges to income tax on—
a
individuals who are treated as receiving income under section 792 (individuals in partnership claiming excess relief),
b
individuals who are treated as receiving income under section 797 (individuals claiming relief for film-related trading losses), and
c
individuals who are treated as receiving income under section 805 (individuals in partnership claiming relief for licence-related trading losses).
2
The charges apply if (among other things) the individual makes a loss in a trade for which the individual claims sideways relief or capital gains relief.
3
For the purposes of this Chapter sideways relief is—
a
trade loss relief against general income (see sections 64 to 70), or
b
early trade losses relief (see sections 72 to 74).
4
For the purposes of this Chapter—
a
capital gains relief is, in relation to a loss, the treatment of the loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and
b
capital gains relief is claimed for a loss when a claim under that section is made in relation to the loss.
5
References in this Chapter to a firm are to be read in the same way as references to a firm in Part 9 of ITTOIA 2005 (which contains special provision about partnerships).