Part 4Loss relief
Chapter 2Trade losses
Restriction on relief for uncommercial trades
C1C266Restriction on relief unless trade is commercial
1
Trade loss relief against general income for a loss made in a trade in a tax year is not available unless the trade is commercial.
2
The trade is commercial if it is carried on throughout F1... the tax year—
a
on a commercial basis, and
b
with a view to the realisation of profits of the trade.
3
If at any time a trade is carried on so as to afford a reasonable expectation of profit, it is treated as carried on at that time with a view to the realisation of profits.
4
If the trade forms part of a larger undertaking, references to profits of the trade are to be read as references to profits of the undertaking as a whole.
5
6
The restriction imposed by this section does not apply to a loss made in the exercise of functions conferred by or under an Act.
7
This section applies to professions and vocations as it applies to trades.