Commentary on Sections Overview Overview Section 805: Partners claiming relief for licence-related trading losses
2357.This section sets out circumstances in which an individual, who was a non-active partner in an early year, and who has claimed sideways relief or capital gains relief for a loss deriving from expenditure related to a licence, is treated as receiving income. It is based on sections 126 and 127 of FA 2004.
2358.The meaning of non-active partner is explained in section 809, by reference to provisions in Chapter 3 of Part 4.
2359.There must be a relevant disposal of the licence which requires that the individual receives non-taxable consideration (defined in subsection (5)).
2360.Income is treated as arising when a “chargeable event” occurs which could be at any time when an individual receives non-taxable consideration for a disposal or the individual makes a further claim for sideways relief or capital gains relief. So a number of chargeable events may occur for a particular tax year.