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(3) Section 381 shall not apply as respects any specified loss where the disposal of the land to which subsection (2)(b) refers is to a connected person (within the meaning of section 10).

(a) interest on borrowed money employed in the purchase or development of land which is held as trading stock (within the meaning of section 89) of the trade, and

(b) any reduction in the value of land held as trading stock (within the meaning of section 89) of the trade;

(2) Subject to subsection (3), a claim to repayment of income tax under section 381 may not be made as respects a specified loss sustained by a specified trader in a tax year where the specified loss—

(3) Section 381 shall not apply as respects any specified loss where the disposal of the land to which subsection (2)(b) refers is to a connected person (within the meaning of section 10).

“aggregate income for the tax year” has the same meaning as in section 531AL;

“specified trade” means a trade, or a business which is deemed to be a trade by virtue of section 640(2)(a), consisting of or including dealing in or developing land to which Chapter 1 of Part 22 applies;