Income Tax Act 2007

Individuals claiming relief for film-related trading losses U.K.

144 (1) The claims covered by section 797(1)(a) include claims within section 119(1)(a) of FA 2004. U.K.

(2) For the purposes of section 797—

(a) a “relevant disposal” does not include a disposal which was made before 10 December 2003, and

(b) an event occurring before the tax year 2007-08 is an “exit event” if (and only if) it is an “exit event” for the purposes of section 119 of FA 2004.

145 (1) The losses covered by section 800(3)(a) include losses in relation to which a claim is made as mentioned in section 121(1)(a) or (b) of FA 2004. U.K.

(2) The income covered by section 800(5) includes amounts treated as received as a result of the application of section 74 of FA 2005.

(3) The losses covered by section 800(6) in relation to a trade include losses within section 121(1A)(b) of FA 2004 made in the trade.

(4) In section 800(9) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004.

146 U.K. In section 801(3) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004.

147 (1) In section 802(1) the reference to the making of a claim includes a reference to the making of a claim as mentioned in section 122A(1) of FA 2004. U.K.

(2) The repeal by this Act of section 122A of FA 2004 (or any provision inserting or amending, or affecting the application of, that section) does not affect the power of the Commissioners for Her Majesty's Revenue and Customs to make regulations under that section having effect before the tax year 2007-08.

148 (1) After the commencement of section 802, the Partnerships (Restrictions on Contributions to a Trade) Regulations 2006 (S.I. 2006/1639) have effect as if made under that section. U.K.

(2) The Regulations so have effect subject to the following modifications.

(3) They have effect as if in regulation 2—

(a) for the definition of “ICTA” there were substituted—

““ITA 2007” means the Income Tax Act 2007;”, and

(b) for the definition of “relevant individual” there were substituted—

““relevant individual” means—

(a) a limited partner (within the meaning given by section [F1 103A] of ITA 2007),

(b) a member of a limited liability partnership, or

(c) a non-active partner (within the meaning given by section [F2 103B] of ITA 2007),

where the partnership carries on a trade in which the individual makes a film-related loss (as defined in section 800(2) of ITA 2007) for which the individual makes a claim as mentioned in section 802(1) of that Act;”.

(4) They have effect as if in regulation 3(a) for “section 120 of the Finance Act 2004” there were substituted “ section 799 of ITA 2007 ”.

(5) They have effect as if in regulation 4—

(a) for “contribution to the trade”, wherever occurring, there were substituted “ capital contribution ”,

(b) for “section 119(2)(b) or (c) of the Finance Act 2004”, wherever occurring, there were substituted “ section 797(2)(b) of ITA 2007 ”, and

(c) for paragraph (c)(ii) there were substituted—

“(ii) the amount of income treated as received in accordance with section 797(5) of that Act.”

(6) See paragraph 35 of this Schedule for provision about the effect of the Partnerships (Restrictions on Contributions to a Trade) Regulations 2005 (S.I. 2005/2017) after the commencement of section 802.

Textual Amendments

F1 Word in Sch. 2 para. 148(3)(b) substituted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 4 paras. 19(a), 21

F2 Word in Sch. 2 para. 148(3)(b) substituted (retrospective to 6.4.2007) by Finance Act 2007 (c. 11), Sch. 4 paras. 19(b), 21

149 (1) In section 803 references to chargeable events include events that are chargeable events for the purposes of section 119 of FA 2004. U.K.

(2) Accordingly, the total amount of income mentioned in section 803(3) is to include any income treated as received as a result of section 119(5)(b) of FA 2004.