Income Tax Act 2007 section 103C

Limit on reliefs in any tax year not to exceed cap for tax year

Section 103C imposes an annual cap of £25,000 on the total sideways relief and capital gains relief that a non-active or limited partner can claim for trade losses made through their partnership activities.

• Where an individual makes a trade loss as a non-active or limited partner, that loss is an "affected loss" subject to an annual relief cap of £25,000
• The total sideways relief and capital gains relief claimed across all affected losses in a tax year must not exceed the £25,000 cap, applied after other partnership loss restriction rules
• Losses derived from qualifying film expenditure are exempt from the cap, and the cap does not prevent a partner from setting a loss against profits of the same trade
• Lloyd's underwriting business is excluded from the scope of this section, and the Treasury has the power to amend the £25,000 cap by order