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Legislation
Income Tax Act 2007

Crossheading Carry-forward trade loss relief

  • Section 83 Carry forward against subsequent trade profits
  • Section 84 How relief works
  • Section 85 Use of trade-related interest and dividends if trade profits insufficient
  • Section 86 Trade transferred to a company
  • Section 87 Ring fence trades
  • Section 88 Carry forward of certain interest as loss
  1. Carry-forward trade loss relief
  2. How relief works

Section 84 | How relief works

From legislation.gov.uk

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

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