PART X LOSS RELIEF AND GROUP RELIEF
C1C2C3CHAPTER I LOSS RELIEF: INCOME TAX
Pt. 10 Chs. 1, 2 extended (with effect in accordance with s. 64, Sch. 22 paras. 16-18 of the extending Act) by Finance Act 2002 (c. 23), Sch. 22 para. 4(2)(d)
Pt. 10 Ch. 1 modified (6.4.2005 with effect in accordance with s. 883(1) of the modifying Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), ss. 226, 227, 232(3) (with Sch. 2)
Trade etc. losses
389 Supplementary provisions relating to carry-back of terminal losses.
1
M1Sections 387, 458 and 474 shall apply to the computation of losses, or of profit or loss, for any purpose of this section or section 388 as they apply to any such computation for the corresponding purposes of section 385.
2
Where on the permanent discontinuance of a trade which consists of or includes the working of a mine, oil well or other source of mineral deposits within the meaning of F4Part 5 of the Capital Allowances Act, a claim for relief is made both under section 388 above and F5section 355 of that Act (carry-back of balancing allowances), the balancing allowance in respect of which the claim is made under F6section 355 shall be left out of account for the purposes of section 388(6), but relief under section 388 shall be given in priority to relief under F6section 355.
3
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F74
For the purposes of this section and section 388 references to the permanent discontinuance of a trade, profession or vocation include—
a
a person permanently ceasing to carry on a trade, profession or vocation, and
b
a partner permanently ceasing to carry on a notional trade in accordance with section 852(4) of ITTOIA 2005.
5
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F18
Where a person occupying woodlands has elected to be charged to income tax in respect thereof under Schedule D, this section and section 388 shall apply to a terminal loss sustained by him in the occupation of the woodlands as they apply to a terminal loss sustained in a trade.
Pt. 10 Chs. 1, 2 extended (with effect in accordance with s. 44 of the extending Act) by Finance Act 1998 (c. 36), Sch. 6 para. 2 (with Sch. 6 para. 6)