Income Tax Act 2007 Schedule 2 paragraph 26

Post-cessation trade loss relief and post-cessation property relief

Paragraph 26 of Schedule 2 is a transitional provision that ensures qualifying events occurring before the 2007–08 tax year can still be covered by the new post-cessation relief rules, provided no claim was made under the old legislation.

• The definition of qualifying events for post-cessation trade relief (section 98(5)) extends to events that took place before the 2007–08 tax year
• This extended coverage also applies to post-cessation property relief through section 125(6)(b)
• The events are only included if no claim was made under the previous legislation (section 109A of the Income and Corporation Taxes Act 1988)
• This transitional rule prevents taxpayers from losing relief entitlements solely because the events pre-date the Income Tax Act 2007