Part 4Loss relief
Chapter 2Trade losses
Restriction on sideways relief for specific trades
80Ring fence income
1
This section applies if—
a
a person has income arising from oil extraction activities or oil rights (“ring fence income”), and
b
the person makes a loss in any trade.
2
Sideways relief for the loss is not to be given against the person’s ring fence income except so far as the loss arises from oil extraction activities or oil rights.
3
“Oil extraction activities” and “oil rights” have the same meaning as in Chapter 5 of Part 12 of ICTA (see section 502 of that Act).
81Dealings in commodity futures
1
This section applies if—
a
a person makes a loss in a trade of dealing in commodity futures,
b
the person carried on the trade as a partner in a firm,
c
the person or one or more of the other partners in the firm was a company, and
d
arrangements within subsection (3) have been made.
2
Sideways relief is not available for the loss.
3
Arrangements are within this subsection if as a result of them—
a
the sole benefit, or
b
the main benefit,
that might be expected to arise to the person from the person’s interest in the firm is the obtaining of a reduction in tax liability by means of sideways relief.
4
It does not matter whether the arrangements were made in the partnership agreement or in any other way.
5
References to making arrangements include effecting schemes.
6
If relief is given in a case to which this section applies, the relief is withdrawn by the making of an assessment to income tax under this section.
7
“Commodity futures” means commodity futures that are for the time being dealt in on a recognised futures exchange (within the meaning of ITTOIA 2005, see section 558(3) of that Act).
82Exploitation of films
In the case of a trade carried on by an individual which consists of or includes the exploitation of films—
a
see sections 115 and 116 for a restriction on sideways relief if the trade was carried on by the individual as a partner in a firm, and
b
see section 796 for a charge to income tax if the individual made a loss in the trade (whether carried on alone or as a partner in a firm) for which sideways relief is claimed.