Income Tax Act 2007 sections 144–149

Individuals claiming relief for film-related trading losses

Sections 144 to 149 of Schedule 2 provide transitional rules ensuring that the anti-avoidance provisions in the Income Tax Act 2007 relating to film-related trading losses apply consistently to claims and events that arose under the earlier Finance Act 2004 regime.

• Claims for sideways or capital gains relief against film-related losses under the 2007 Act also capture claims previously made under section 119 of the Finance Act 2004, with disposals before 10 December 2003 excluded and pre-2007-08 exit events defined by the earlier legislation.
• The definitions of film-related losses, relevant income, and capital contributions in the 2007 Act are extended to include equivalent amounts arising under the Finance Act 2004 and Finance Act 2005 provisions.
• The Partnerships (Restrictions on Contributions to a Trade) Regulations 2006 continue in force after the 2007 Act commences, but with updated cross-references so they read as if made under the new legislation, and HMRC's power to make regulations affecting periods before 2007-08 under the repealed Finance Act 2004 section 122A is preserved.
• Chargeable events under the 2007 Act's double-counting prohibition include events that were chargeable under section 119 of the Finance Act 2004, so any income already treated as received under that earlier provision counts towards the total when preventing relief being claimed twice.

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