Part 4

Loss relief
Chapter 2

Trade losses

Restriction on relief for “hobby” farming or market gardening

Restriction on relief in case of farming or market gardening
67
1
This section applies if a loss is made in a trade of farming or market gardening in a tax year (“the current tax year”).
2
Trade loss relief against general income is not available for the loss if a loss, calculated without regard to capital allowances, was made in the trade in each of the previous 5 tax years (see section 70).
3
This section does not prevent relief for the loss from being given if—
a
the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking,
b
the farming or market gardening activities meet the reasonable expectation of profit test (see section 68), or
c
the trade was started, or treated as started, at any time within the 5 tax years before the current tax year (see section 69 below, as well as section 17 of ITTOIA 2005).
Ss. 66-70 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 1(11)(a)
Ss. 66-70 applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 3(1)(a)