Section 127C | Excess loss allocation to partners who are individuals ^F1

(1)Subsection (2) applies if—^F1

(a)in a tax year, an individual (“A”) makes a loss in a UK property business or an overseas property business as a partner in a firm, and^F1

(b)A's loss arises, wholly or partly—^F1

(i)directly or indirectly in consequence of, or^F1

(ii)otherwise in connection with,^F1

relevant tax avoidance arrangements.

(2)No relevant loss relief may be given to A for A's loss.^F1

(3)In subsection (1)(b) “relevant tax avoidance arrangements” means arrangements—^F1

(a)to which A is party, and^F1

(b)the main purpose, or one of the main purposes, of which is to secure that losses of a UK property business or an overseas property business are allocated, or otherwise arise, in whole or in part to A, rather than a person who is not an individual, with a view to A obtaining relevant loss relief.^F1

(4)In subsection (3)(b) references to A include references to A and other individuals.^F1

(5)For the purposes of subsection (3)(b) it does not matter if the person who is not an individual is not a partner in the firm or is unknown or does not exist.^F1

(6)In this section—^F1

“arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable), and

“relevant loss relief” means relief under section 118 (carry-forward property loss relief) or section 120 (property loss relief against general income).