Income Tax Act 2007 section 127BA

Restriction of relief: cash basis

Section 127BA prevents property business losses calculated on the cash basis from being relieved against a person's general income.

• This section applies where a person makes a loss in a UK or overseas property business during a tax year
• The restriction applies whether the property business is carried on alone or in partnership
• The key trigger is that the business profits for the tax year are calculated using the cash basis rather than the accruals basis
• Where the cash basis applies, no property loss relief against general income is available for that loss