Income Tax Act 2007 section 128

Employment loss relief against general income

Section 128 allows individuals who make a loss in an employment or office to claim relief by deducting that loss from their general income, either in the year the loss arose, the previous year, or both.

• A person who makes a loss in an employment or office in a tax year may claim to set that loss against their general income for the loss-making year, the previous tax year, or both
• Where relief is claimed for both years, the claim must specify which year the deduction is to be applied to first; any unused balance can be carried to the other year via a further claim
• The claim must be made no later than one year after the normal self-assessment filing date for the loss-making year
• No claim is permitted to the extent the loss arises from arrangements whose main purpose, or one of whose main purposes, is the avoidance of tax