Section 261D | Treating excess post-cessation trade or property relief as CGT loss ^F1

(1)A person may make a claim under this section if—

(a)relief is available to the person under section 96 or 125 of ITA 2007 (post-cessation trade or property relief) for a tax year in relation to an amount, and

(b)the person makes a claim under that section to deduct the amount in calculating the person's net income for the tax year.

(2)A person may also make a claim under this section if—

(a)relief is available to the person as mentioned in subsection (1)(a) for a tax year in relation to an amount, but

(b)the person's total income for the tax year is nil.

(3)A claim under this section is for treating for the purposes of capital gains tax so much of the amount as is not deducted in calculating the person's net income for the tax year (“the relevant amount”) as an allowable loss accruing to the person in the year of assessment corresponding to the tax year.

(4)But so much of the relevant amount as exceeds the maximum amount (see section 261E) is not to be treated for the purposes of capital gains tax as an allowable loss.

(5)The relevant amount is no longer to be regarded as an amount available for income tax relief.

(6)A claim under this section must be made on or before the first anniversary of the normal self-assessment filing date for the tax year mentioned in subsection (1) or (2) (as the case may be).

(7)In this section “normal self-assessment filing date”, “tax year” and “total income” have the same meaning as in the Income Tax Acts (see section 989 of ITA 2007).