Finance Act, 1979

Chapter III

Provisions Relating to Losses

Amendment of section 307 (right to repayment of tax by reference to losses) of Income Tax Act, 1967.

17.Section 307 of the Income Tax Act, 1967 , is hereby amended—

(a) by the deletion from subsection (1) of “or in the occupation of woodlands managed on a commercial basis and with a view to the realisation of profits,”, and

(b) by the insertion after subsection (1A) of the following subsections:

“(1AA) Where in any year of assessment any person carries on any trade other than farming, or any profession or employment, either solely or in partnership, or farming in a case in which this section applies, in the carrying on of which he has sustained a loss in the year preceding the year of assessment, he may make a claim under subsection (1) for the year of assessment in respect of the said loss in so far as relief has not already been given for that loss under the said subsection (1) or under any other provision of this Act; and any repayment of tax by virtue of this subsection shall be made in priority to any repayment of tax under the said subsection (1) in respect of a loss sustained in the year for which the repayment is claimed.

(1AAA) The provisions of this section shall not apply to any loss sustained in the year of assessment 1979-80 or any subsequent year of assessment by the owner of a stallion from the sale of services of mares by the stallion or of rights to such services or by the part-owner of a stallion from the sale of such services or such rights.”.