Section 73 | How relief works

This section explains how the deductions are made for the 3 tax years mentioned in section 72(2). The amount of the loss to be deducted at any step is limited in accordance with sections 24A and 25(4) and (5) .Step 1Deduct the loss in calculating the individual's net income for the earliest of the 3 tax years.Step 2Deduct any part of the loss not deducted at Step 1 in calculating the individual's net income for the next tax year.Step 3Deduct any part of the loss not deducted at Step 1 or 2 in calculating the individual's net income for the latest of the 3 tax years.Other claimsIf the loss has not been deducted in full at Steps 1 to 3, the individual may use the part not so deducted in giving effect to any other relief under this Chapter (depending on the terms of the relief).