(1) Chapter 1 of Part 12 of the Principal Act is amended -

(a) in section 381(1) by substituting "this section and sections 381A, 381B and 381C" for "this section and section 381A",

(b) by inserting the following section after section 381A:

"381B. Restriction of loss relief - passive trades

(1)

(a) In this section 'relevant loss' means a loss in a trade or profession (including any amount in respect of allowances which, pursuant to section 392, is to be treated as a loss for the purposes of section 381) but does not include a loss which arises from -

(i) farming, within the meaning of Part 23,

(ii) market gardening,

(iii) a trade which consists of the underwriting business of a member of Lloyd's,

(iv) any amount in respect of qualifying expenditure which by virtue of section 482(2) is to be treated as a loss, or

(v) any amount in respect of specified capital allowances, within

the meaning of section 531AAE, which pursuant to section 392 is to be treated as a loss.

(b) For the purposes of this section -