Income Tax Act 2007 section 114

Power to exclude other amounts

Section 114 gives HMRC the power to make regulations that exclude certain amounts from the calculation of a partner's contribution to a firm or LLP for the purposes of trade loss relief restrictions.

• HMRC may make regulations specifying amounts to be excluded when calculating a partner's contribution to a firm (for limited partners and non-active partners) or to an LLP
• Such regulations may have retrospective effect and may differ for different cases or purposes
• The regulations can go as far as amending or repealing provisions in any Act passed before Finance Act 2005, including Acts of the Scottish Parliament and Northern Ireland legislation
• Any regulations under this section must be approved by the House of Commons through the affirmative resolution procedure before they can take effect