Income Tax Act 2007 Schedule 2 paragraph 34

Regulations under section 114

Paragraph 34 of Schedule 2 limits the scope of regulations that may be made under section 114 and preserves HMRC's power to make certain regulations under repealed provisions for earlier tax years.

• Regulations under section 114 cannot alter the amount of relief available for trade losses that arose on or before 1 December 2004.
• Whether a loss qualifies as a "post-1 December 2004 loss" is determined according to the rules in section 795.
• The repeal of sections 118ZN and 118ZO of ICTA by ITA 2007 does not remove HMRC's power to make regulations under section 118ZN for periods before the 2007-08 tax year.
• This preserves continuity so that earlier regulatory powers are not inadvertently lost through the consolidation of tax legislation.