In certain circumstances 'sideways' loss relief is denied or restricted. Sideways loss relief is defined as loss relief against general income (B8.202) or loss relief in the early years of a trade (B8.206)1.
The restrictions operate to either essentially 'ring-fence' losses arising from certain activities or to prevent use of artificially contrived losses.
Sideways loss relief is restricted for losses arising from the following activities:
鈥⑻� leasing of plant and machinery, see B5.4172
鈥⑻� oil extraction activities, see D7.9023
鈥⑻� exploitation of films, see B5.5054
鈥⑻� farming, market gardening and forestry, see B5.1755
Targeted anti-avoidance provisions also apply to restrict sideways loss relief, where the losses have been 'artificially contrived'. These provisions address non-active traders, (building on the existing restriction for non-active partners), and 'tax-generated losses'.
The amount of losses for which sideways loss relief can be claimed against other general income and capital gains6
Web page updated on 17 Mar 2025 16:33
