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HMRC internal manual

Business Income Manual

Partnerships - computation and assessment: changes of partners: loss relief

S854(4) Income Tax (Trading and Other Income) Act 2005, S89 Income Tax Act 2007

A partner who ceases to be a partner in a continuing business can claim terminal loss relief on their share of the partnership trade loss. See BIM85055.

The continuing partners’ share of the partnership trade loss can be set against general income or carried forward against their share of future profits arising from the same trade. See BIM85015 and BIM85060.