(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.