Taxes Consolidation Act 1997 section 661

Farming: restriction of relief in respect of certain losses

Section 661 restricts the carry-forward of farming losses incurred in years when the farmer was not chargeable to tax on farming profits.

• Applies to farming losses sustained in a year of assessment where the farmer was not chargeable to tax on farming profits.
• Relates to the period before 1983–84 when certain farmers were exempt from tax based on the rateable valuation of their farms.
• Losses from exempt years cannot be carried forward under section 382 for set-off against farming profits of later taxable years.
• The restriction ensures that only losses incurred while within the tax system can be relieved against future farming profits.