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),
F7bb
section 74E (restriction on the relief and trade loss relief where cash basis applies),
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),
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