Section 64 | Deduction of losses from general income

(1)A person may make a claim for trade loss relief against general income if the person—

(a)carries on a trade in a tax year, and

(b)makes a loss in the trade in the tax year (“the loss-making year”).

(2)The claim is for the loss to be deducted in calculating the person's net income—

(a)for the loss-making year,

(b)for the previous tax year, or

(c)for both tax years.

(See Step 2 of the calculation in section 23.)

(3)If the claim is made in relation to both tax years, the claim must specify the tax year for which a deduction is to be made first.

(4)Otherwise the claim must specify either the loss-making year or the previous tax year.

(5)The claim must be made on or before the first anniversary of the normal self-assessment filing date for the loss-making year.

(6)Nothing in this section prevents a person who makes a claim specifying a particular tax year in respect of a loss from making a further claim specifying the other tax year in respect of the unused part of the loss.

(7)This section applies to professions and vocations as it applies to trades.

(8)This section needs to be read with—

(a)section 65 (how relief works),

(b)sections 66 to 70 (restrictions on the relief),

(ba)sections 74ZA to 74D (general restrictions on relief),^F1F2

(bb)Repealed^F3

(c)sections 75 to 79 (restrictions on the relief and early trade losses relief in relation to capital allowances), and^F4

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

(e)Repealed^F5

(f)Repealed^F6