Part 4Loss relief
Chapter 5Losses in an employment or office
128Employment loss relief against general income
1
A person may make a claim for employment loss relief against general income if the person—
a
is in employment or holds an office in a tax year, and
b
makes a loss in the employment or office in the tax year (“the loss-making year”).
2
The claim is for the loss to be deducted in calculating the person's net income—
a
for the loss-making year,
b
for the previous tax year, or
c
for both tax years.
(See Step 2 of the calculation in section 23.)
3
If the claim is made in relation to both tax years, the claim must specify the year for which a deduction is to be made first.
4
Otherwise the claim must specify either the loss-making year or the previous tax year.
5
The claim must be made on or before the first anniversary of the normal self-assessment filing date for the loss-making year.
F15A
No claim may be made in respect of the loss if and to the extent that it is made as a result of anything done in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax.
6
Nothing in this section prevents a person who makes a claim specifying a particular tax year in respect of a loss from making a further claim specifying the other tax year in respect of the unused part of the loss.
7
This Chapter is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving two or more years).
8
This section needs to be read with section 129 (how relief works).