Finance Act 2021

Further provision about relief under paragraph 1 or 2

3 (1) The following sections of ITA 2007 apply in relation to relief under paragraph 1 or 2 as they apply in relation to relief under section 64 of that Act—

(a) sections 66 to 70 (restrictions on relief under section 64),

(b) sections 74ZA to 74D (general restrictions on relief),

(c) section 74E (no relief where cash basis used to calculate losses),

(d) sections 75 to 79 (restrictions on relief under section 64 and early trade losses relief in relation to capital allowances), and

(e) section 80 (restrictions on those reliefs in relation to ring fence income).

(2) Paragraphs 1 and 2 apply to professions and vocations as they apply to trades.

(3) Paragraphs 1 and 2 are subject to paragraph 2 of Schedule 1B to TMA 1970 (claims to loss relief involving 2 or more years).

(4) Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraphs 1 and 2 were included in Chapter 2 of Part 4 of that Act.

(5) The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraphs 1 and 2.