Part 2Trading income

Chapter 15Basis periods

Overlap profits and losses

206Restriction on bringing losses into account twice

If a loss arises in, or is apportioned under section 203 to, two overlapping basis periods, the amount of the loss—

(a)

is brought into account in calculating the profits of the first basis period, and

(b)

is not brought into account in calculating the profits of the second basis period.