(1)Sideways relief is not available to an individual for so much of a loss as derives from a trade leasing allowance unless the individual meets the time commitment test.
(2)A trade leasing allowance is an allowance made under Part 2 of CAA 2001 in respect of—
(a)expenditure incurred on the provision of plant or machinery for leasing in the course of a trade, or
(b)expenditure incurred on the provision for the purposes of a trade of an asset which is not to be leased but which is fee-producing.
(3)An asset is fee-producing if payments in the nature of—
(a)royalties, or
(b)licence fees,
are to arise from rights granted by the individual in connection with the asset.
(4)To meet the time commitment test conditions A and B must be met.
(5)Condition A is that the individual must carry on the trade for a continuous period of at least 6 months beginning or ending in F1... the tax year in which the loss was made F2....
(6)Condition B is that substantially the whole of the individual's time must be given to carrying on the trade—
(a)for a continuous period of at least 6 months beginning or ending in the [F3tax year] (if the individual starts or permanently ceases to carry on the trade in the tax year (or does both)), or
(b)throughout [F4tax year] period (in any other case).
Textual Amendments
F1Words in s. 75(5) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 46(2)(a), 61(1)
F2Words in s. 75(5) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 46(2)(b), 61(1)
F3Words in s. 75(6)(a) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 46(3), 61(1)
F4Words in s. 75(6)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 46(3), 61(1)
Modifications etc. (not altering text)
C1Ss. 75-79 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 1(11)(c)
C2Ss. 75-79 applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 3(1)(d)