SCHEDULES

SCHEDULE 2Temporary extension of periods to which trade losses may be carried back

PART 1Income tax

Further provision about relief under paragraph 1 or 2

3

1

The following sections of ITA 2007 apply in relation to relief under paragraph 1 or 2 as they apply in relation to relief under section 64 of that Act—

a

sections 66 to 70 (restrictions on relief under section 64),

b

sections 74ZA to 74D (general restrictions on relief),

c

section 74E (no relief where cash basis used to calculate losses),

d

sections 75 to 79 (restrictions on relief under section 64 and early trade losses relief in relation to capital allowances), and

e

section 80 (restrictions on those reliefs in relation to ring fence income).

2

Paragraphs 1 and 2 apply to professions and vocations as they apply to trades.

3

Paragraphs 1 and 2 are subject to paragraph 2 of Schedule 1B to TMA 1970 (claims to loss relief involving 2 or more years).

4

Sections 61 to 63 of ITA 2007 (meaning of “making a loss in a tax year” etc and prohibition against double counting) have effect as if paragraphs 1 and 2 were included in Chapter 2 of Part 4 of that Act.

5

The reference in paragraph 3(1) of Schedule 2 to the Social Security Contributions and Benefits Act 1992 and Social Security Contributions and Benefits (Northern Ireland) Act 1992 (levy of Class 4 contributions with income tax) to section 64 of ITA 2007 includes paragraphs 1 and 2.