Section 74B No relief for tax-generated losses
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Amendments
Section 74B inserted by Finance Act 2008 section 60 and Schedule 21 para 2 in relation to any loss made by an individual in 2007-08 or any later tax year, but not in relation to a loss made by an individual in a tax year the basis period for which ended before 12 March 2008.
(1) This section applies if—
(a) during a tax year an individual carries on a trade, otherwise than as a partner in a firm, in a non-active capacity (see section 74C),
(b) the individual makes a loss in the trade in that tax year, and
(c) the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.
(2) No sideways relief or capital gains relief may be given to the individual for the loss (but subject to subsection (5)).
(3) In subsection (1) “relevant tax avoidance arrangements” means arrangements made by the individual the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.
(4) In subsection (3) “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
(5) This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).
(6) Subsection (10) of section 74A (capital gains relief) applies for the purposes of this section.
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