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Finance Act 2012

Details of the Section

2.Subsection (2) adds section 127B of the Income Tax Act 2007 (ITA) to sections restricting relief under Chapter 4 of ITA.

3.Subsection (4) inserts new section 127B of ITA (no relief for tax-generated agricultural expenses).

4.New section 127B(1) provides that this section applies if a person makes a loss in a tax year from carrying on a property business with a relevant agricultural connection, either in a sole capacity of as a partner, and that loss arises directly or indirectly in consequence of, or otherwise in connection with relevant tax avoidance arrangements.

5.New section 127B(2) provides that there is no property loss relief for the loss falling within section 127B(1).

6.New section 127B(4) defines “relevant tax avoidance arrangements” for the purposes of section 127B.

7.New section 127B(5) defines “arrangements” for the purposes of section 127B(4).

8.New section 127B(6) defines “the applicable amount of the loss” and “allowable agricultural expenses” for the purposes of section 127B

9.Subsections (5) and (6) provide commencement rules

10.Subsection (7) defines “an unconditional obligation” for the purposes of subsection (6).

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