Part 4Loss relief

Chapter 2Trade losses

Early trade losses relief

72Relief for individuals for losses in first 4 years of trade

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 F1unless trade is commercial etc ),

F2ba

sections F474ZA to 74D (general restrictions on relief),

c

sections 75 to 79 (restrictions on the relief and trade loss relief against general income in relation to capital allowances), F5 and

d

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

F6e

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F3f

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