Part 3 U.K.Income tax, corporation tax and capital gains tax

Chapter 9U.K.Avoidance involving loss relief or partnership

Individuals in partnership: exit chargeU.K.

130“A significant amount of time”U.K.

(1)For the purposes of section 126(4)(b) the individual shall be treated as having “devoted a significant amount of time to the trade” in a given year of assessment if, for the whole of the relevant period, he spent an average of at least ten hours a week personally engaged in activities carried on for the purposes of the trade.

(2)“The relevant period” means the basis period for the year of assessment in question, except that—

(a)if the basis period is less than six months and begins with the date when the individual first carried on the trade, “the relevant period” means six months beginning with that date; and

(b)if the basis period is less than six months and ends with the date when the individual ceased to carry on the trade, “the relevant period” means six months ending with that date.

(3)In this section “basis period” means (subject to subsection (4)) the basis period given by [F1Chapter 15 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 as applied by section 853 of that Act.]

(4)The basis period for a year of assessment to which [F2section 199(1)] of that Act applies is to be taken for the purposes of this section to be the period beginning with the date when the individual first carried on the trade and ending with the end of the year of assessment.

Textual Amendments