As noted at ¶263-725, an income tax charge is in certain circumstances imposed on a partner who has claimed tax relief. For these purposes, a partner includes a limited partner as defined at ITA 2007, s. 103A (in accordance with s. 103A(1)(c)), and in such a case the concept of ‘firm’ is adapted accordingly (ITA 2007, s. 792(7), (8)).

The conditions for imposing this charge are as follows (ITA 2007, s. 792):

(1)An individual must be carrying on a trade ‘the relevant trade’ as a partner.

(2)The individual claims certain loss relief (see below) for trading losses sustained in periods beginning on or after 2 December 2004.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.