Part 13Tax avoidance

Chapter 5Avoidance involving trading losses

Individuals in partnership: recovery of excess relief

793Calculating the amount of income treated as received

1

The amount of income treated as received by the individual under section 792 when the chargeable event occurs is the lowest of amounts A to C.

2

Amount A is the amount by which the individual's contribution to the firm is reduced as a result of the application of regulations made under section 114.

3

Amount B is the amount given by—

a

taking, at the time immediately after the chargeable event occurs, the total amount of trade losses claimed that are post-1 December 2004 losses, and

b

reducing that amount (but not below nil) by any reclaimed relief.

4

Amount C is the amount given by—

a

taking the amount by which, at the time immediately after the chargeable event occurs, the total amount of trade losses claimed exceeds the individual's contribution to the firm, and

b

reducing that amount (but not below nil) by any reclaimed relief.