Part 4Loss relief
Chapter 2Trade losses
F1Restriction on sideways relief and capital gains relief where cash basis applies
Annotations:
Amendments (Textual)
74ENo relief where cash basis used to calculate losses
1
This section applies if—
a
a person makes a loss in any trade in a tax year, and
b
an election under section 25A of ITTOIA 2005 (cash basis for small businesses) has effect in relation to the trade for that tax year.
2
No sideways relief or capital gains relief may be given to the person for the loss.
3
For the purposes of this section—
a
capital gains relief is, in relation to a loss, the treatment of a loss as an allowable loss by virtue of section 261B of TCGA 1992 (use of trading loss as a CGT loss), and
b
capital gains relief is given for a loss when it is so treated.
S. 74E and cross-heading inserted (with effect in accordance with Sch. 4 paras. 56, 57 of the amending Act) by Finance Act 2013 (c. 29), Sch. 4 para. 54(4)