Income Tax Act 2007 sections 142–143

Individuals in partnership: recovery of excess relief

Sections 142–143 provide transitional rules ensuring that the anti-avoidance provisions for recovering excess sideways or capital gains relief claimed by partners apply equally to relief claimed under the earlier Finance Act 2005 and ICTA regimes.

• Relief claims made under the earlier Finance Act 2005 provisions (section 74(1)(a) and (b)) are treated as falling within the scope of the recovery rules in section 792 of ITA 2007.
• The loss restriction rules for limited partners (section 104), LLP members (section 107), and non-active partners in early tax years (section 110) also cover their predecessor equivalents under ICTA (sections 117 and 118ZE).
• Losses and income relevant to the recovery calculation under section 794 include losses within section 74(5) of Finance Act 2005 and amounts treated as received under that same section.
• Where an older ICTA restriction provision would otherwise apply, it is mapped to the corresponding current ITA 2007 restriction: ICTA section 117 maps to section 104 (or section 107 if applied via ICTA section 118ZB), and ICTA section 118ZE maps to section 110.