Part 4Loss relief

Chapter 2Trade losses

Introduction

60Overview of Chapter

1

This Chapter—

a

provides for trade loss relief against general income (see sections 64 to 70),

b

provides for early trade losses relief (see sections 72 to 74),

c

contains provision restricting both those reliefs F1and capital gains relief (see sections 74ZA to 82),

d

provides for carry-forward trade loss relief (see sections 83 to 88),

e

provides for terminal trade loss relief (see sections 89 to 94),

f

contains restrictions on the above reliefs for trades, professions and vocations carried on wholly outside the United Kingdom (see section 95), and

g

provides for post-cessation trade relief (see sections 96 to 100).

2

This Chapter is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving two or more years).

3

For a rule treating an individual as starting or permanently ceasing to carry on a trade, profession or vocation for income tax purposes (including those of this Part), see—

a

section 17 of ITTOIA 2005 (effect of becoming or ceasing to be a UK resident), and

b

section 852(6) and (7) of ITTOIA 2005 (corresponding rule in the case of a trade or profession carried on by a firm).

4

For the purposes of this Chapter sideways relief is—

a

trade loss relief against general income, or

b

early trade losses relief.

5

References in this Chapter to a firm are to be read in the same way as references to a firm in Part 9 of ITTOIA 2005 (which contains special provision about partnerships).