Section 67 — Income Tax Act 2007: Restriction on relief in case of farming or market gardening

Restriction on relief in case of farming or market gardening 67 1 This section applies if a loss is made in a trade of farming or market gardening in a tax year (“the current tax year”).

2 Trade loss relief against general income is not available for the loss if a loss, calculated without regard to capital allowances, was made in the trade in each of the previous 5 tax years (see section 70).

3 This section does not prevent relief for the loss from being given if—

a the carrying on of the trade forms part of, and is ancillary to, a larger trading undertaking, b the farming or market gardening activities meet the reasonable expectation of profit test (see section 68), or c the trade was started, or treated as started, at any time within the 5 tax years before the current tax year (see section 69 below, as well as section 17 of ITTOIA 2005).