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.