Part 4Loss relief
Chapter 4Losses from property businesses
F2Restrictions on relief
127CF1Excess loss allocation to partners who are individuals
1
Subsection (2) applies if—
a
in a tax year, an individual (“A”) makes a loss in a UK property business or an overseas property business as a partner in a firm, and
b
A's loss arises, wholly or partly—
i
directly or indirectly in consequence of, or
ii
otherwise in connection with,
relevant tax avoidance arrangements.
2
No relevant loss relief may be given to A for A's loss.
3
In subsection (1)(b) “relevant tax avoidance arrangements” means arrangements—
a
to which A is party, and
b
the main purpose, or one of the main purposes, of which is to secure that losses of a UK property business or an overseas property business are allocated, or otherwise arise, in whole or in part to A, rather than a person who is not an individual, with a view to A obtaining relevant loss relief.
4
In subsection (3)(b) references to A include references to A and other individuals.
5
For the purposes of subsection (3)(b) it does not matter if the person who is not an individual is not a partner in the firm or is unknown or does not exist.
6
In this section—
“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and
“relevant loss relief” means relief under section 118 (carry-forward property loss relief) or section 120 (property loss relief against general income).
S. 127A and cross-heading inserted (8.4.2010 with effect in accordance with s. 25(5)-(7) of the amending Act) by Finance Act 2010 (c. 13), s. 25(4)