Section 72 — Income Tax Act 2007: Relief for individuals for losses in first 4 years of trade

Relief for individuals for losses in first 4 years of trade 72 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 unless trade is commercial etc ),

ba sections 74ZA to 74D (general restrictions on relief),

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

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

e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .