SCHEDULE 21 Restriction on Loss Relief for Non-active Traders
Finance Act 2008 (2008 c 9) | Legislation

SCHEDULE 21 Restriction on Loss Relief for Non-active Traders

Section 60

Introduction

1

ITA 2007 is amended as follows.

Main provisions

2

After section 74 insert—

“General restrictions on sideways relief and capital gains relief
74A Reliefs in any tax year not to exceed cap for tax year

(1)     This section applies if—

(a)     during a tax year an individual carries on one or more trades, otherwise than as a partner in a firm, in a non-active capacity (see section 74C), and

(b)     the individual makes a loss in any of those trades (an “affected lossâ€) in that tax year.

(2)     There is a restriction on the amount of sideways relief and capital gains relief which (after applying the restrictions under the other provisions of this Chapter) may be given to the individual for any affected loss (but see subsections (7) and (8)).

(3)     The restriction is that the total amount of the sideways relief and capital gains relief given to the individual for all the affected losses must not exceed the cap for that tax year.

(4)     The cap for any tax year is £25,000.

(5)     The Treasury may by order amend the

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