Part 13

Tax avoidance
Chapter 5

Avoidance involving trading losses

Individuals claiming relief for film-related trading losses

Meaning of “film-related losses” etc
800
1
This section applies for the purposes of sections 797, 801 and 802.
2
A loss is a “film-related loss” if the calculation of profits or losses that it results from is made in accordance with any provision of Chapter 9 of Part 2 of ITTOIA 2005.
3
“The individual's claimed film-related losses” means—
a
the total amount of film-related losses made by the individual in the trade so far as they are losses for which the individual has made a relevant claim, less
b
the amount of any relevant recovered relief.
4
“The amount of any relevant recovered relief” means—
a
amount A, or
b
if less, amount B.
5
Amount A is the total amount of income treated as received by the individual under section 792 (recovery of excess relief) as a result of the application of that section in relation to claims for relief for losses made by the individual in the trade.
6
Amount B is the total amount of film-related losses within subsection (7) for which the individual has made a relevant claim.
7
A loss is within this subsection if it is made by the individual in the trade—
a
in a tax year at a time during which the individual carries on the trade as a member of an LLP or as a limited partner, or
b
in an early tax year during which the individual carries on the trade as a non-active partner.
8
Expressions used in subsection (7) are to be read as if contained in Chapter 3 of Part 4.
9
Subsection (10) applies if—
a
the individual has made a relevant claim for a film-related loss made in the trade as a partner in a firm, and
b
the firm is carrying on, or has carried on, more than one trade.
10
For the purpose of determining the individual's claimed film-related losses—
a
apply subsection (3)(a) in relation to each of the trades and then add the results together,
b
apply subsection (5) as if the reference to the trade were a reference to any of the trades, and
c
apply subsections (6) and (7) in relation to each of the trades and then add the results together.