The Government has today announced action to counter avoidance that relies on using sideways loss relief.
The new rules will prevent sideways relief and capital gains relief ('sideways loss relief') from being given for a loss from a trade, profession or vocation where the loss arises from tax avoidance arrangements. Legislation will be included in the Finance Bill 2010 but will be effective from today, 21 October 2009.
This measure targets those who enter into arrangements for the purpose of obtaining a reduction in tax liability by means of sideways loss relief. It does not impact on loss-makers who have not entered into avoidance arrangements.
Issued 21 October 2009
