4.—(1) Amend regulation 3(1) as follows.
(2) In paragraph (1) at the end add—
“Any trading loss in the year not set off as a result of the calculations in Steps One to Four above due to an insufficiency of income may be carried forward and set off against trading income (if any) of the same trade, profession or vocation in subsequent years (taking earlier years first) for the purposes of calculation of income under this regulation.”.
(3) Amend paragraph (4) as follows—
(a)in sub-paragraph (a) omit “or”,
(b)in sub-paragraph (b) at the end add “or”,
(c)after sub-paragraph (b) add–—
“(c)resident but neither ordinarily resident nor domiciled in the United Kingdom.”.
(4) In paragraph (7)—
(a)at the end of sub-paragraph (b) omit “and”,
(b)at the end of sub-paragraph (c)(iii) add “and”,
(c)after sub-paragraph (c) add—
“(d)any contribution made by the claimant, or in the case of a joint claim, by either or both of the claimants, if made in accordance with Inland Revenue Extra Statutory Concession A9.”.
(5) At the end add—
“(8) If—
(a)a claimant has sustained a loss in relation to a Schedule A business or an overseas property business; and
(b)the relief to which he is entitled in accordance with section 379A(2) and (3) of the Taxes Act(2) exceeds the amount of his property income or foreign income for tax credits purposes, for the year in question;
the amount of his total income for tax credit purposes, computed in accordance with the preceding provisions of this regulation, shall be reduced by the amount of the excess.
In this paragraph “Schedule A business” and “overseas property business” have the same meanings as they have in the Taxes Act.”.
This regulation was amended by regulation 5 of S.I. 2003/732.
Section 379A was inserted by paragraph 19 of Schedule 6 to the Finance Act 1995, amended by paragraphs 2 and 9 of Schedule of Schedule 15, and partly repealed by Part VI(II) of Schedule 18, to the Finance Act 1997, further amended by paragraph 1 of Schedule 7 to the Finance Act 1998, paragraph 28 of Schedule 2 to the Capital Allowances Act 2001 and paragraph 35(2) of Schedule 29 to the Finance Act 2001. Section 379A is applied for the purposes of overseas property businesses by section 379B of the Taxes Act, which was inserted by paragraph 27 of Schedule 5 to the Finance Act 1998.