Part 4Loss relief
Chapter 4Losses from property businesses
Property loss relief against general income
123Meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”
1
This section applies for the purposes of sections 120 and 122.
2
The loss has a capital allowances connection if, in calculating the loss—
a
the amount of the capital allowances treated as expenses of the business, exceeds
b
the amount of any charges under CAA 2001 treated as receipts of the business.
3
The business has a relevant agricultural connection if—
a
the business is carried on in relation to land that consists of or includes an agricultural estate, and
b
allowable agricultural expenses deducted in calculating the loss are attributable to the estate.
4
“Agricultural estate” means land—
a
which is managed as one estate, and
b
which consists of or includes land occupied wholly or mainly for purposes of husbandry.
5
“Allowable agricultural expenses”, in relation to an agricultural estate, means any expenses attributable to the estate which are deductible—
a
in respect of maintenance, repairs, insurance or management of the estate, and
b
otherwise than in respect of interest payable on a loan.
6
But expenses attributable to the parts of the estate used wholly for purposes other than those of husbandry are to be ignored.
7
And if parts of the estate are used both—
a
for purposes of husbandry, and
b
for other purposes,
the expenses in respect of those parts are to be reduced so far as those parts are used for the other purposes.