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| HMRC publish amendments to loss relief proposals |
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Following comments received, HMRC have published Brief 19/07, which explains that two amendments will be made to the proposed legislation announced in Brief 18/07 (Tackling Avoidance - Individuals in partnership - restriction of loss relief). The amendments relate to the treatment of certain film-related losses. Brief 18/07 contained a technical note detailing proposed legislation to tackle avoidance based on abuse of sideways loss relief by non-active partners. The technical note explained two changes affecting the amount of trading losses for a tax year for which a non-active partner can claim sideways loss relief:
The annual limit The proposed annual limit of £25,000 (paragraphs 20 to 25 of the Technical Note) will not apply to losses derived from relevant film-related expenditure. The purpose test The proposed ‘purpose test’ (paragraphs 18 and 19 of the Technical Note) will not apply to capital contributions made by a non-active partner to a partnership carrying on a film-related trade where the trading loss for which the partner is claiming sideways loss relief is derived solely from relevant film-related expenditure. Relevant film-related expenditure Relevant incidental expenditure is incidental expenditure which (although not deducted under ITTOIA 2005, ss 137 to 140) is incurred in connection with the production of a film, or the acquisition of the original master version of a film, in relation to which expenditure is deducted under those sections. Expenditure is incidental if it is on management, administration or obtaining finance. Related news Restriction of loss relief proposed Links HMRC Brief 18/07: Tackling Avoidance - Individuals in partnership - restriction of loss relief
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About The Author  Sarah Laing Sarah is a Chartered Tax Adviser. She has been writing professionally since joining CCH Editions in 1998 as a Senior Technical Editor, contributing to a range of highly regarded publications including the British Tax Reporter, Taxes - The Weekly Tax News, the Red & Green legislation volumes, Hardman's, International Tax Agreements and many others. She became Publishing Manager for the tax and accounting portfolio in 2001 and later went on to help run CCH Seminars (including ABG Courses and Conferences). Sarah originally worked for the Inland Revenue in Newbury and Swindon Tax Offices, before moving out into practice in 1991. She has worked for both small and Big 5 firms. She now works as a freelance author providing technical writing services for the tax and accountancy profession. |
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Article Added Wednesday, 07 March 2007 | 2234 Hits |
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