Part 2Income tax, corporation tax and capital gains tax
Chapter 7Avoidance involving partnership
Partners: recovery of excess relief
75Computing the chargeable amount
1
For the purposes of section 74, the “chargeable amount” is determined by taking whichever is the smallest of amounts A, B and C.
2
Amount A is the amount of the relevant decrease in the individual’s contribution to the relevant trade which constitutes the chargeable event.
3
Amount B is the amount given by—
a
taking, at the time immediately after the occurrence of the chargeable event, the amount of the total losses claimed which are relevant losses, and
b
reducing that amount (but not below nil) by any reclaimed relief at that time.
4
Amount C is the amount given by—
a
taking the amount by which, at the time immediately after the occurrence of the chargeable event, the total losses claimed exceed the individual’s contribution to the relevant trade, and
b
reducing that amount (but not below nil) by any reclaimed relief at that time.
5
This section is deemed to have come into force on 2nd December 2004.