{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-122",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-122.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/122",
  "kind": "section",
  "number": "122",
  "heading": "Meaning of “the applicable amount of the loss”",
  "text": "(1) This section defines “the applicable amount of the loss” for the purposes of sections 120 and 121.\n(2) “The applicable amount of the loss” is—\n(a) the amount of the loss, or\n(b) if less, the amount arising from the relevant connection (see subsections (3) to (5)).\n(3) If—\n(a) the loss has a capital allowances connection, but\n(b) the business does not have a relevant agricultural connection,\nthe amount arising from the relevant connection is the amount (“the net capital allowances”) by which the capital allowances exceed the charges under CAA 2001.\n(4) If—\n(a) the business has a relevant agricultural connection, but\n(b) the loss does not have a capital allowances connection,\nthe amount arising from the relevant connection is the amount of the allowable agricultural expenses.\n(5) If—\n(a) the loss has a capital allowances connection, and\n(b) the business has a relevant agricultural connection,\nthe amount arising from the relevant connection is the sum of the net capital allowances and the amount of the allowable agricultural expenses.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/122",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}