As noted at ¶291-190, 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.

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