(1)This Chapter—
(a)provides for trade loss relief against general income (see sections 64 to 70),
(b)provides for early trade losses relief (see sections 72 to 74),
(c)contains provision restricting both those reliefs [F1and capital gains relief (see sections 74ZA] to 82),
(d)provides for carry-forward trade loss relief (see sections 83 to 88),
(e)provides for terminal trade loss relief (see sections 89 to 94),
(f)contains restrictions on the above reliefs for trades, professions and vocations carried on wholly outside the United Kingdom (see section 95), and
(g)provides for post-cessation trade relief (see sections 96 to 100).
(2)This Chapter is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving two or more years).
(3)For a rule treating an individual as starting or permanently ceasing to carry on a trade, profession or vocation for income tax purposes (including those of this Part), see—
(a)section 17 of ITTOIA 2005 (effect of becoming or ceasing to be a UK resident), and
(b)section 852(6) and (7) of ITTOIA 2005 (corresponding rule in the case of a trade or profession carried on by a firm).
(4)For the purposes of this Chapter sideways relief is—
(a)trade loss relief against general income, or
(b)early trade losses relief.
(5)References in this Chapter to a firm are to be read in the same way as references to a firm in Part 9 of ITTOIA 2005 (which contains special provision about partnerships).
Textual Amendments
F1Words in s. 60(1)(c) substituted (8.4.2010 with effect in accordance with Sch. 3 para. 11 of the amending Act) by Finance Act 2010 (c. 13), Sch. 3 para. 2
(1)This section applies if a trade, profession or vocation is carried on by a person otherwise than as a partner in a firm.
(2)For the purposes of this Chapter any reference to the person making a loss in the trade, profession or vocation in a tax year is to the person making a loss in the trade, profession or vocation in the basis period for the tax year.
(3)This section is subject to section 70 (restriction on trade loss relief against general income in case of farming or market gardening).
(4)For the rules about basis periods, see Chapter 15 of Part 2 of ITTOIA 2005.
(5)In particular, see the rule in section 206 of ITTOIA 2005 (restriction on bringing losses into account twice).
Modifications etc. (not altering text)
C1Ss. 61-63 modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 2(4)
(1)This section applies if a trade or profession is carried on by a person as a partner in a firm.
(2)Any reference to a person making a loss in a trade or profession in a tax year is to the partner making a loss in the partner's notional trade in the basis period for the tax year (as to which, see sections 852 and 853 of ITTOIA 2005).
(3)Further—
(a)any reference to a person making a claim for relief for a loss made in a trade or profession is to the partner making a claim for relief for a loss made in the partner's notional trade,
(b)any reference to a basis period for a tax year is to the basis period for the partner's notional trade for the tax year,
(c)any reference to the profits or losses of a partner's notional trade of a tax year is to the partner's share of the firm's profits or losses of the trade or profession treated for the purposes of Chapter 15 of Part 2 of ITTOIA 2005 as the profits or losses of the partner's notional trade in the basis period for the tax year,
(d)any reference to a person starting to carry on a trade or profession is to the partner starting to carry on the notional trade in accordance with section 852(2) or (3) of ITTOIA 2005, and
(e)any reference to a person permanently ceasing to carry on a trade or profession is to the partner permanently ceasing to carry on the notional trade in accordance with section 852(4) to (6) of ITTOIA 2005.
(4)In this section a partner's “notional trade” has the same meaning as in Part 9 of ITTOIA 2005.
(5)This section applies for the purposes of this Chapter and Chapter 3, except that it does not apply for the purposes of section 67(2) or sections 68 to 70 (restriction on trade loss relief against general income in case of farming or market gardening).
Modifications etc. (not altering text)
C1Ss. 61-63 modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 2(4)
C2S. 62 applied (19.7.2007) by Finance Act 2007 (c. 11), Sch. 4 para. 1(13)
If relief is given under any provision of this Chapter for a loss or part of a loss, relief is not to be given for—
(a)the same loss, or
(b)the same part of the loss,
under any other provision of this Chapter or of the Income Tax Acts.
Modifications etc. (not altering text)
C1Ss. 61-63 modified (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 2(4)