Annex 1: Minor changes in the law Change 10: Trading losses: restrictions: restrictions not to apply where an overseas property business carried on in the exercise of functions conferred by or under the law of a territory outside the United Kingdom: section 67
This change brings the position of an overseas property business that is carried on in the exercise of functions conferred by or under the law of a territory outside the United Kingdom in line with the treatment of an overseas property business that is carried on in the exercise of functions conferred by or under an Act of the United Kingdom government or the Scottish Parliament.
If an overseas property business is not carried on on a commercial basis then relief for losses can only be obtained if the business is carried on in the exercise of functions conferred by or under specific legislation. In these limited circumstances it is considered inequitable that relief may only be obtained if the legislation in question is United Kingdom legislation. The change extends the scope of the relief to functions conferred by or under the law of a territory outside the United Kingdom.
This change is in taxpayers’ favour in principle and may benefit some in practice. But the numbers affected and the amounts involved are likely to be small.