Section 793 — Income Tax Act 2007: Calculating the amount of income treated as received

Calculating the amount of income treated as received 793 1 The amount of income treated as received by the individual under section 792 when the chargeable event occurs is the lowest of amounts A to C.

2 Amount A is the amount by which the individual's contribution to the firm is reduced as a result of the application of regulations made under section 114.

3 Amount B is the amount given by—

a taking, at the time immediately after the chargeable event occurs, the total amount of trade losses claimed that are post-1 December 2004 losses, and b reducing that amount (but not below nil) by any reclaimed relief.

4 Amount C is the amount given by—

a taking the amount by which, at the time immediately after the chargeable event occurs, the total amount of trade losses claimed exceeds the individual's contribution to the firm, and b reducing that amount (but not below nil) by any reclaimed relief.