Section HG 12 — Income Tax Act 2007: Limitation on deductions by partners in limited partnerships: carry-forward

HG 12 Limitation on deductions by partners in limited partnerships: carry-forward When this section applies (1) This section applies when, for an income year, a partner is denied a deduction under section HG 11 . Carry-forward (2) The partner is allowed a deduction, for an amount for which the partner is denied a deduction under section HG 11 , for the income year (the later income year ) after the one for which it is denied under section HG 11, unless–– (a) the limited partnership ceases to be a limited partnership in the later year: (b) the partner ceases to be a partner in the later year Carry-forward: resumption (2B) If a person would have been allowed a deduction but for the application of subsection (2)(b) for the later year, they are allowed a deduction for the amount for the first income year after the later year in which they resume being a partner in the limited partnership. Relationship with subject matter (3) The deduction allowed under this section is subject to section HG 11 , to the extent to which that section applies to the deduction and the relevant partner. Defined in this Act: amount , deduction , income year , limited partner Section HG 12: inserted, on 1 April 2008, by section 19(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2). Section HG 12(2): amended (with effect on 1 April 2008), on 21 December 2010, by section 82(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HG 12(2B) heading: inserted (with effect on 1 April 2008), on 21 December 2010, by section 82(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section HG 12(2B): inserted (with effect on 1 April 2008), on 21 December 2010, by section 82(2) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).