(1)Early trade losses relief for a loss made by an individual in a trade in a tax year is not available unless the trade is commercial.
(2)The trade is commercial if it is carried on throughout the basis period for the tax year—
(a)on a commercial basis, and
(b)in such a way that profits of the trade could reasonably be expected to be made in the basis period or within a reasonable time afterwards.
(3)If the trade forms part of a larger undertaking, the reference to profits of the trade is to be read as a reference to profits of the undertaking as a whole.
(4)Early trade losses relief for a loss made by an individual is not available if—
(a)the individual first carries on the trade at a time when the individual has a spouse or civil partner and is living with the spouse or civil partner,
(b)the spouse or civil partner previously carried on the trade, and
(c)the loss is made in a tax year falling after the relevant 4 year period.
(5)The relevant 4 year period comprises—
(a)the tax year in which the spouse or civil partner first carried on the trade, and
(b)the next 3 tax years.
(6)This section applies to professions and vocations as it applies to trades.