Section 152 — Income Tax Act 2007: Losses from miscellaneous transactions

Losses from miscellaneous transactions 152 1 If in a tax year (“the loss-making year”) a person makes a loss in a relevant transaction, the person may make a claim for loss relief against relevant miscellaneous income.

2 A transaction is a relevant one if, assuming there were profits or other income arising from it—

a those profits or that other income would be income on which income tax is charged under, or by virtue of, a relevant section 1016 provision (“ the relevant provision ”) , and b the person would be liable for income tax charged on those profits or that other income. 2A A relevant section 1016 provision” means a provision to which section 1016 applies, other than—

a regulation 17 of the Offshore Funds (Tax) Regulations 2009 ( S.I. 2009/3001) (treatment of participants in non-reporting funds: charge to tax on disposal of asset), or b Chapter 9 of Part 4 of ITTOIA 2005 (gains from contracts for life insurance etc ).

3 The claim is for the loss to be deducted in calculating the person's net income for the loss-making year and subsequent tax years (see Step 2 of the calculation in section 23).

4 But a deduction for that purpose is to be made only from the person's relevant miscellaneous income.

5 The person's “ is so much of the person's total income as is— relevant miscellaneous income a income or gains arising from transactions, and b income on which income tax is charged under, or by virtue of, the relevant provision. This is subject to subsection (6).

6 If the loss was made by the person as a partner in a partnership, the transactions covered by subsection (5)(a) are limited to transactions entered into by the partnership.

7 In calculating a person's net income for a tax year, deductions under this section from the person's relevant miscellaneous income are to be made before deductions of any other reliefs from that relevant miscellaneous income. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9 This section needs to be read with—

a section 153 (how relief works),

b section 154 (transactions in deposit rights), ... ba section 154A (anti-avoidance),

and c section 155 (claims).