Income Tax Act 2007

72Relief for individuals for losses in first 4 years of tradeU.K.
This section has no associated Explanatory Notes

(1)An individual may make a claim for early trade losses relief if the individual makes a loss in a trade—

(a)in the tax year in which the trade is first carried on by the individual, or

(b)in any of the next 3 tax years.

(2)The claim is for the loss to be deducted in calculating the individual's net income for the 3 tax years before the one in which the loss is made (see Step 2 of the calculation in section 23).

(3)The claim must be made on or before the first anniversary of the normal self-assessment filing date for the tax year in which the loss is made.

(4)This section applies to professions and vocations as it applies to trades.

(5)This section needs to be read with—

(a)section 73 (how relief works),

(b)section 74 (restrictions on the relief),

(c)sections 75 to 79 (restrictions on the relief and trade loss relief against general income in relation to capital allowances),

(d)section 80 (restrictions on those reliefs in relation to ring fence income),

(e)section 81 (restrictions on those reliefs in relation to dealings in commodity futures), and

(f)section 734 of ICTA (restrictions on those reliefs in relation to bond-washing).