Income Tax Act 2007 section 802

Exclusion of amounts in calculating capital contribution by a partner

Section 802 gives HMRC the power to make regulations that exclude certain amounts from the calculation of a partner's capital contribution when that partner claims sideways or capital gains relief for film-related trading losses.

• HMRC may specify by regulation which amounts are to be excluded from a partner's capital contribution calculation for the purposes of claiming relief on film-related trading losses
• The regulations can have retrospective effect, applying to events that have already occurred
• Regulations may include incidental, supplemental, consequential, and transitional provisions, and may amend or repeal provisions of any Act passed before the Finance Act 2005
• No regulations may be made under this section unless a draft has been laid before and approved by resolution of the House of Commons (the affirmative resolution procedure)