Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Budget '08: Anti avoidance

18 March 2008
Categories: Comment & Analysis , HMRC powers
Details of anti-avoidance measures

Sideways loss relief

Finance Act 2007 s 26 and Sch 4 introduced legislation to counteract the use of partnership arrangements that generate trade losses for use as sideways loss relief by a non-active or limited partner.

HMRC have now decided to restrict the amount of sideways loss relief that can be claimed by an individual other than a partner carrying on a trade in a non-active capacity.

Where a loss arises to an individual carrying on a trade in a non-active capacity as a result of tax avoidance arrangements made on or after 12 March 2008 no sideways loss relief will be available for that loss.

Otherwise there will be an annual limit of £25 000 on the total amount of sideways loss relief that an individual may claim from trades carried on in a non-active capacity.

For these purposes an individual other than a...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon