Part 4Loss relief

Chapter 3Restrictions on trade loss relief for certain partners

Introduction

102Overview of Chapter

1

This Chapter restricts the amount of relief that may be given for any loss made by an individual in a trade carried on by the individual as—

a

a limited partner in any tax year (see sections 104 to 106 and section 114),

b

a member of a limited liability partnership (an “LLP”) in any tax year (see sections 107 to 109 and section 114), or

c

a non-active partner in an early tax year (see sections 110 to 114).

2

This Chapter also restricts the amount of relief that may be given for any loss made by an individual in a trade carried on by the individual as a partner in a firm if the trade consists of or includes the exploitation of films (see sections 115 and 116).

3

This Chapter needs to be read with sections 791 to 795 (income tax charge recovering excess relief for losses made by individuals carrying on a trade in partnership).

4

See also—

a

sections 796 to 803 (income tax charge in relation to individuals claiming relief for film-related trading losses), and

b

sections 804 to 809 (income tax charge in relation to individuals carrying on a trade in partnership claiming relief for licence-related trading losses).