Trade leasing allowances

‘Sideways relief’ is not given to an individual for losses from ‘trade leasing allowances’ unless the individual carrying on the trade meets a time commitment test. The purpose of the rule is to deny the more generous reliefs available for trading losses if the transaction is, in reality, a form of investment rather than trading as such.

A ‘trade leasing allowance’ is a plant and machinery allowance in relation to expenditure that is incurred:

on the provision of plant or machinery for leasing in the course of a trade; or

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