Section 74B — Finance Act 2008: No relief for tax-generated losses

No relief for tax-generated losses 74B 1 This section applies if—

a during a tax year an individual carries on a trade, otherwise than as a partner in a firm, in a non-active capacity (see section 74C),

b the individual makes a loss in the trade in that tax year, and c the loss arises directly or indirectly in consequence of, or otherwise in connection with, relevant tax avoidance arrangements.

2 No sideways relief or capital gains relief may be given to the individual for the loss (but subject to subsection (5)).

3 In subsection (1) “ relevant tax avoidance arrangements ” means arrangements made by the individual the main purpose, or one of the main purposes, of which is the obtaining of a reduction in tax liability by means of sideways relief or capital gains relief.

4 In subsection (3) “ arrangements ” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

5 This section has no effect in relation to any loss that derives wholly from qualifying film expenditure (see section 74D).

6 Subsection (10) of section 74A (capital gains relief) applies for the purposes of this section.