Corporation Tax Act 2010 section 64

UK property business to be commercial or carried on for statutory functions

Section 64 restricts the availability of UK property business loss relief (under sections 62 and 63) to businesses that are either run commercially or carried on in the exercise of statutory functions.

• Loss relief for UK property businesses under sections 62 and 63 is only available where the business is carried on commercially or under statutory functions
• A business is only considered commercial if it is run with a view to making a profit, or with a reasonable expectation of doing so — "profit" here means profit in its ordinary commercial sense
• Statutory functions include those conferred by any Act of Parliament, including Acts of the Scottish Parliament
• If the way a business is run changes during an accounting period, it is treated as having been carried on throughout that entire period in the manner it was being conducted at the end of the period