BIM75620 - Farming losses: restriction of relief after 5 years of losses
ICTA88/S397 denies relief against general income etc (see
BIM75605) in respect of a farming or
market gardening loss where a loss computed without regard to
capital allowances was incurred in each of the five years of
assessment preceding that in which the claimed loss was incurred
(see
BIM75625).
This provision was introduced in 1967 to complement what is
now ICTA88/S384 Section 397 provides a more objective test and
should be applied, subject to
BIM75640 and
BIM75645, in all cases where the
conditions are satisfied.
The Section only applies to losses sustained in trades of
farming or market gardening, but for this purpose the definitions
of those trades (see
BIM55051 and
BIM62601) are extended, by subsection
(5), to include activities carried on outside the UK.
