Section 119 — Income Tax Act 2007: How relief works

How relief works 119 This section explains how the deductions are to be made. The amount of the loss to be deducted at any step is limited in accordance with section 25(4) and (5). Step 1 Deduct the loss from the profits of the business for the next tax year. Step 2 Deduct from the profits of the business for the following tax year the amount of the loss not previously deducted. Step 3 Continue to apply Step 2 in relation to the profits of the business for subsequent tax years until all the loss is deducted.