399 Dealings in commodity futures etc: withdrawal of loss relief.U.K.
(1)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F2(1A)F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
[F3(1B)F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
(2)M1Relief shall not be given to [F5any company under section][F6393A(1)] in respect of a loss sustained in a trade of dealing in commodity futures if—
(a)the loss was sustained in a trade carried on in partnership F7. . . ; and
(b)a scheme has been effected or arrangements have been made (whether by the partnership agreement or otherwise) such that the sole or main benefit that might be expected to accrue to [F8that company from its] interest in the partnership was the obtaining of a reduction in [F9corporation tax liability] by means of any such relief.
(3)Where relief has been given in a case to which subsection (2) above applies it shall be withdrawn by the making of an assessment [F10to corporation tax F11. . . .]
(4)Subsection (2) above does not apply where the scheme was effected or the arrangements were made wholly before 6th April 1976.
(5)M2In this section “commodity futures”, “financial futures” and “qualifying options” have the same meanings as in section [F12143 of the 1992 Act]. . . .
Textual Amendments
F1S. 399(1)(1A) repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 171(2), Sch. 3 (with Sch. 2)
F2S. 399(1A) inserted (with effect in accordance with s. 80(6)(7) of the amending Act) by Finance Act 1997 (c. 16), s. 80(4)
F3S. 399(1B) inserted (with effect in accordance with s. 83(3) of the amending Act) by Finance Act 2002 (c. 23), Sch. 27 para. 4(2) (with Sch. 28)
F4S. 399(1B) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 115(2), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F5Words in s. 399(2) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 76(2)(a) (with Sch. 2)
F6Words in s. 399(2) substituted by Finance Act 1991 (c. 31, SIF 63:1), s. 73(3)-(5), Sch. 15 para. 11
F7Words in s. 399(2)(a) repealed (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 76(2)(b), Sch. 3 Pt. 1 (with Sch. 2)
F8Words in s. 399(2)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 76(2)(c) (with Sch. 2)
F9Words in s. 399(2)(b) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the amending Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 76(2)(d) (with Sch. 2)
F10Words in s. 399(3) substituted (6.4.2007 with effect in accordance with s. 1034(1) of the repealing Act) by Income Tax Act 2007 (c. 3), Sch. 1 para. 76(3) (with Sch. 2)
F11Words in s. 399(3) repealed (1.4.2009 with effect in accordance with s. 1329(1) of the repealing Act) by Corporation Tax Act 2009 (c. 4), Sch. 1 para. 115(3), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)
F12Words in s. 399(5) substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(19)(b) (with ss. 60, 101(1), 171, 201(3)).
Marginal Citations
M1Source—1978 s.31
M2Source—1985 s.72(2); 1987 Sch.15 11(2); 1987 (No.2) s.81(1)