Part 4Loss relief
Chapter 4Losses from property businesses
Property loss relief against general income
122Meaning of “the applicable amount of the loss”
1
This section defines “the applicable amount of the loss” for the purposes of sections 120 and 121.
2
“The applicable amount of the loss” is—
a
the amount of the loss, or
b
if less, the amount arising from the relevant connection (see subsections (3) to (5)).
3
If—
a
the loss has a capital allowances connection, but
b
the business does not have a relevant agricultural connection,
the amount arising from the relevant connection is the amount (“the net capital allowances”) by which the capital allowances exceed the charges under CAA 2001.
4
If—
a
the business has a relevant agricultural connection, but
b
the loss does not have a capital allowances connection,
the amount arising from the relevant connection is the amount of the allowable agricultural expenses.
5
If—
a
the loss has a capital allowances connection, and
b
the business has a relevant agricultural connection,
the amount arising from the relevant connection is the sum of the net capital allowances and the amount of the allowable agricultural expenses.