BIM75715 - Losses - restriction of relief: Trade losses - change in conduct of trade

ITA07/S66(5) provides that where there is a change in the basis period in the way in which a trade, profession or vocation is being carried on it is to be treated as being carried on throughout the basis period in the way it is being carried on by the end of the basis period.

Thus:

• where a trade, in previous years, was not carried on on a commercial basis with a view to the realisation of profits; and
• there was a change in the basis period in the way in which the trade is carried on, so that by the end of the basis period, steps have been taken to carry on the trade on a commercial basis.

ITA07/S66 does not operate to deny relief for that year.