Section 118 — Income Tax Act 2007: Carry forward against subsequent property business profits

Carry forward against subsequent property business profits 118 1 Relief is given to a person under this section if the person—

a carries on a UK property business or overseas property business (alone or in partnership) in a tax year, and b makes a loss in the business in the tax year.

2 The relief is given by deducting the loss in calculating the person's net income for subsequent tax years (see Step 2 of the calculation in section 23).

3 But a deduction for that purpose is to be made only from profits of the business.

4 In calculating a person's net income for a tax year, deductions under this section from the profits of a business are to be made before deductions of any other reliefs from those profits.

5 No relief is to be given under this section so far as relief for the loss is given under section 120.

6 This section needs to be read with section 119 (how relief works).