Income Tax Act 2007 section 67

Restriction on relief in case of farming or market gardening

Section 67 restricts the availability of trade loss relief against general income for farming or market gardening businesses that have made sustained losses over several years.

• A farming or market gardening loss in the current tax year cannot be set against general income if losses (ignoring capital allowances) were made in each of the previous 5 tax years
• The restriction does not apply if the farming or market gardening trade is ancillary to a larger trading undertaking
• The restriction does not apply if the farming or market gardening activities meet the reasonable expectation of profit test
• The restriction does not apply if the trade was started, or treated as started, within the 5 tax years before the current tax year