Finance Act 1980

14 (1) Where the Board have determined under Schedule 2 that an allowable loss has accrued to the new participator from the field in the transfer period or a later chargeable period, then, if—

(a) the loss has been computed by reference to an amount taken into account by virtue of paragraph 6 above ; and

(b) the old participator has no interest in the field at the end of the transfer period,

the old and new participators may jointly elect that the loss shall be surrendered to the old participator to the extent that it does not exceed whichever is the lesser of the amount referred to in paragraph (a) above and the total assessable profits as reduced under section 7 that accrued to the old participator from the field in chargeable periods up to and including the chargeable period after the transfer period.

(2) Where any amount of a loss is surrendered under this paragraph it shall be treated—

(a) in relation to the old participator, as an allowable loss accruing to him in the chargeable period next but one after the transfer period ; and

(b) in relation to the new participator, as if it had been relieved against assessable profits accruing to him from the field in chargeable periods before that in which it accrued.