Part 13

Tax avoidance
Chapter 5

Avoidance involving trading losses

Individuals in partnership: recovery of excess relief

Meaning of “post-1 December 2004 loss”
795
1
For the purposes of sections 792 and 793 a “post-1 December 2004 loss” means—
a
any loss made by an individual in a trade in a tax year ... which begins on or after 2 December 2004, or
b
the post-1 December 2004 part of any loss made by an individual in a trade in a tax year ... which includes 2 December 2004 (but begins before that date).
2
The “post-1 December 2004 part” of any loss made by an individual in a trade means the individual's share of any losses made by the relevant firm in the trade in the period—
a
beginning with 2 December 2004, and
b
ending with the end of ... the tax year concerned.
3
For this purpose “the relevant firm” means the firm in which the individual carried on the trade, and—
a
the losses of that firm are calculated as if that period were one for which profits and losses had to be calculated for the purposes of section 849 of ITTOIA 2005 (calculation of firm's profits or losses), and
b
the individual's share of the losses is determined in accordance with the individual's interest in the firm during that period.
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words in s. 795(2)(b) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 59(3), 61(1)
Words in s. 795(1)(a) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 59(2), 61(1)
S. 795(4) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 59(4), 61(1)
Words in s. 795(1)(b) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 59(2), 61(1)