F1SCHEDULE 1B Claims for relief involving two or more years
Preliminary
1
(1)
In this Schedule—
(a)
any reference to a claim includes a reference to an election or notice; and
(b)
any reference to the amount in which a person is chargeable to tax is a reference to the amount in which he is so chargeable after taking into account any relief or allowance for which a claim is made.
F2(2)
For the purposes of this Schedule, two or more claims made by the same person are associated with each other if each of them F3is a claim to which this Schedule applies and the same year of assessment is the earlier year in relation to each of those claims.
(3)
In sub-paragraph (2) above, any reference to claims F4includes a reference to amendments and revocations to which paragraph 4 below applies.
Loss relief
2
(1)
This paragraph applies where a person makes a claim requiring relief for a loss incurred or treated as incurred, or a payment made, in one year of assessment (“the later year”) to be given in an earlier year of assessment (“the earlier year”).
(2)
Section 42(2) of this Act shall not apply in relation to the claim.
(3)
The claim shall relate to the later year.
(4)
Subject to sub-paragraph (5) below, the claim shall be for an amount equal to the difference between—
(a)
the amount in which the person is chargeable to tax for the earlier year (“amount A”); and
(b)
the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).
(5)
Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.
(6)
Effect shall be given to the claim in relation to the later year, whether by repayment or set-off, or by an increase in the aggregate amount given by section 59B(1)(b) of this Act, or otherwise.
(7)
For the purposes of this paragraph, any deduction made under section 62(2) of the 1992 Act (death: general provisions) in respect of an allowable loss shall be deemed to be made in pursuance of a claim requiring relief to be given in respect of that loss.
Relief for fluctuating profits of farming etc.
3
(1)
This paragraph applies where a person who is or has been carrying on F5a qualifying trade, profession or vocation (within the meaning of Chapter 16 of Part 2 of ITTOIA 2005) claims that Chapter 16 of Part 2 of ITTOIA 2005 shall have effect in relation to his profits from that tradeF6, profession or vocation
F7(a)
in the case of a two-year claim, for two consecutive years of assessment, and
(b)
in the case of a five-year claim, for five consecutive years of assessment.
(2)
The claim shall relate to F8the last of the two or five years.
(3)
Subject to sub-paragraph (4) below, in so far as the claim relates to the profits of F9an earlier year, the claim shall be for an amount equal to the difference between—
(a)
the amount in which the person is chargeable to tax for the earlier year (“amount A”); and
(b)
the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).
(4)
Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.
(5)
(6)
Where this paragraph applies twice in relation to the same year of assessment, the increase or reduction in the amount of tax payable for that year which is required by sub-paragraph (5) above on the earlier application shall be disregarded in determining amounts A and B above for the purposes of the later application.
F12(7)
In this paragraph—
“two-year claim” means a claim under section 222 of ITTOIA 2005;
“five-year claim” means a claim under section 222A of ITTOIA 2005.
Relief claimed by virtue of F13section 224(4) of ITTOIA 2005
4
(1)
This paragraph applies where—
(a)
(b)
the making or amendment of the claim would be out of time but for F18section 224(4) of that Act .
(2)
The claim or amendment shall relate to F19the last of the two or five years.
(3)
Subject to sub-paragraph (4) below, in so far as the claim or amendment relates to income of F20an earlier year, the amount claimed, or (as the case may be) the increase or reduction in the amount claimed, shall be equal to the difference between—
(a)
the amount in which the person is chargeable to tax for the earlier year (“amount A”); and
(b)
the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim or amendment in relation to that year (“amount B”).
(4)
Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.
(5)
In so far as the claim or amendment relates to income of F21an earlier year, effect shall be given to the claim or amendment in relation to F22the last of the two or five years by an increase in the amount of tax payable or, as the case may require, in the aggregate amount given by section 59B(1)(b) of this Act.
(6)
In this paragraph “amendment” shall be construed accordingly.
Carry-back of post-cessation etc. receipts
5
(1)
This paragraph applies where a person who has received a sum to which F23section 257 of ITTOIA 2005 applies (election for carry-back) makes an election under that section requiring tax to be charged as if the sum were received on F24the date of the cessation; and in this paragraph—
“the earlier year” means the year in which the sum is treated as received;
“the later year” means the year in which the sum is received.
(2)
The claim shall relate to the later year.
(3)
Subject to sub-paragraph (4) below, the claim shall be for an amount equal to the difference between—
(a)
the amount in which the person is chargeable to tax for the earlier year (“amount A”); and
(b)
the amount in which he would be so chargeable on the assumption that effect could be, and were, given to the claim in relation to that year (“amount B”).
(4)
Where effect has been given to one or more associated claims, amounts A and B above shall each be determined on the assumption that effect could have been, and had been, given to the associated claim or claims in relation to the earlier year.
(5)
In computing amount B for the purposes of this paragraph, no further deduction or relief shall be made or given in respect of any loss or allowance deducted in pursuance of F25section 254 of ITTOIA 2005.
(6)
Effect shall be given to the claim in relation to the later year by an increase in the amount of tax payable.
Backward spreading of certain payments
F266
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