Part 4Loss relief
Chapter 2Trade losses
Restrictions on sideways relief for certain capital allowances
C1C275Trade leasing allowances given to individuals
1
Sideways relief is not available to an individual for so much of a loss as derives from a trade leasing allowance unless the individual meets the time commitment test.
2
A trade leasing allowance is an allowance made under Part 2 of CAA 2001 in respect of—
a
expenditure incurred on the provision of plant or machinery for leasing in the course of a trade, or
b
expenditure incurred on the provision for the purposes of a trade of an asset which is not to be leased but which is fee-producing.
3
An asset is fee-producing if payments in the nature of—
a
royalties, or
b
licence fees,
are to arise from rights granted by the individual in connection with the asset.
4
To meet the time commitment test conditions A and B must be met.
5
6
Condition B is that substantially the whole of the individual's time must be given to carrying on the trade—
a
for a continuous period of at least 6 months beginning or ending in the F3tax year (if the individual starts or permanently ceases to carry on the trade in the tax year (or does both)), or
b
throughout F4tax year period (in any other case).