SCHEDULES

SCHEDULE 2Transitionals and savings

Part 5Losses (except losses on disposal of shares)

Sideways relief: trade leasing allowances given to individuals

23

1

This paragraph applies if—

a

a person makes a loss (“the 2006-07 loss”) in a trade in the tax year 2006-07,

b

relief under section 380 or 381 of ICTA is not available for the 2006-07 loss (or for part of it) because of section 384(6) of that Act,

c

the person makes a loss (“the 2007-08 loss”) in the trade in the tax year 2007-08,

d

(apart from this paragraph) relief under section 64 or 72 of this Act is not available for the 2007-08 loss (or for part of it) because of section 75 of this Act,

e

the basis period for the tax year 2007-08 overlaps with the tax year 2006-07, and

f

ignoring this Act, section 384(6) of ICTA would not have prevented relief under section 380 or 381 of that Act being available for the 2007-08 loss (or for the part).

2

Section 75 of this Act is not to apply in relation to the 2007-08 loss (or to the part).