Section 66 Restriction on relief unless trade is commercialC1C2
United Kingdom
Trade loss relief against general income for a loss made in a trade in a tax year is not available unless the trade is commercial.
The trade is commercial if it is carried on throughout F1... the tax year—
on a commercial basis, and
with a view to the realisation of profits of the trade.
If at any time a trade is carried on so as to afford a reasonable expectation of profit, it is treated as carried on at that time with a view to the realisation of profits.
If the trade forms part of a larger undertaking, references to profits of the trade are to be read as references to profits of the undertaking as a whole.
If there is a change in the F2tax year in the way in which the trade is carried on, the trade is treated as carried on throughout the tax year in the way in which it is carried on by the end of the tax year.
The restriction imposed by this section does not apply to a loss made in the exercise of functions conferred by or under an Act.
This section applies to professions and vocations as it applies to trades.
Annotations
Textual amendments
- F1
Words in s. 66(2) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 42(2), 61(1)
- F2
Words in s. 66(5) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 42(3), 61(1)
Modifications
- C1
Ss. 66-70 applied (21.7.2009) by Finance Act 2009 (c. 10), Sch. 6 para. 1(11)(a)
- C2
Ss. 66-70 applied (10.6.2021) by Finance Act 2021 (c. 26), Sch. 2 para. 3(1)(a)