Speed Read: FA 2010 Sch 3 contains a broad anti-avoidance rule for taxpayers (whether active or non-active) carrying on a trade, profession or vocation (whether in partnership or alone) and seeking to claim sideways loss relief. This rule marks a departure from previous anti-avoidance measures in this context and has the potential to be more effective in preventing perceived avoidance schemes (including certain film finance structures) by attacking the purpose of a transaction rather than the mechanics by which it is effected. The practical application of such purpose tests remains uncertain both for taxpayers and HMRC, however, while they continue to be largely untested in the UK courts.