Part 4Loss relief

Chapter 3Restrictions on trade loss relief for certain partners

Introduction

102Overview of Chapter

(1)

This Chapter restricts the amount of relief that may be given for any loss made by an individual in a trade carried on by the individual as—

(a)

a limited partner in any tax year (see sections F1103A, 103C to 105, 113A and 114),

(b)

a member of a limited liability partnership (an “LLP”) in any tax year (see sections F2103C, 103D, 107 to 109, 113A and 114), or

(c)

a non-active partner F3(see sections 103B to 103D and 110 to 114) .

(2)

This Chapter also restricts the amount of relief that may be given for any loss made by an individual in a trade carried on by the individual as a partner in a firm if the trade consists of or includes the exploitation of films (see F4section 115 ).

F5(2A)

This Chapter also provides for no relief to be given for a loss made by an individual in a trade carried on by the individual as a partner in a firm in certain cases where some or all of the loss is allocated to the individual rather than a person who is not an individual (see section 116A).

(3)

This Chapter needs to be read with sections 791 to 795 (income tax charge recovering excess relief for losses made by individuals carrying on a trade in partnership).

(4)

See also—

(a)

sections 796 to 803 (income tax charge in relation to individuals claiming relief for film-related trading losses), and

(b)

sections 804 to 809 (income tax charge in relation to individuals carrying on a trade in partnership claiming relief for licence-related trading losses).