Section 75 — Income Tax Act 2007: Trade leasing allowances given to individuals

Trade leasing allowances given to individuals 75 1 Sideways relief is not available to an individual for so much of a loss as derives from a trade leasing allowance unless the individual meets the time commitment test.

2 A trade leasing allowance is an allowance made under Part 2 of CAA 2001 in respect of—

a expenditure incurred on the provision of plant or machinery for leasing in the course of a trade, or b expenditure incurred on the provision for the purposes of a trade of an asset which is not to be leased but which is fee-producing.

3 An asset is fee-producing if payments in the nature of—

a royalties, or b licence fees, are to arise from rights granted by the individual in connection with the asset.

4 To meet the time commitment test conditions A and B must be met.

5 Condition A is that the individual must carry on the trade for a continuous period of at least 6 months beginning or ending in ... the tax year in which the loss was made ....

6 Condition B is that substantially the whole of the individual's time must be given to carrying on the trade—

a for a continuous period of at least 6 months beginning or ending in the tax year (if the individual starts or permanently ceases to carry on the trade in the tax year (or does both)), or b throughout tax year period (in any other case).