Paragraph 7 Loss to be relieved against other participators’ profits

(1)

The intermediate unrelieved loss shall (but only for the purposes of determinations under this Schedule) be relieved against relevant profits accruing to a different owner.

(2)

The provisions of paragraphs 8 to 10 apply for the purposes of relieving the intermediate unrelieved loss under this paragraph.

(3)

In this paragraph and paragraph 8, a “different owner” means any participator in the field who—

(a)

has the loss-maker’s interest at any time (whether before or after the transfer) when the loss-maker does not have that interest, or

(b)

has a part of the loss-maker’s interest at any time (whether before or after the transfer) when the loss-maker does not have that part.

(4)

In sub-paragraph (3) “the loss-maker’s interest” means—

(a)

if the loss-maker is the old participator or the new participator, the transferred interest;

(b)

if the loss-maker is a subsequent new owner and at any time (whether before or after the transfer) has the whole of the transferred interest, that interest; and

(c)

if the loss-maker is a subsequent new owner and paragraph (b) does not apply, the aggregate of each part of the transferred interest that at any time (whether before or after the transfer) is a part that the loss-maker has.