Income Tax Act 2007 section 60

Overview of Chapter

Section 60 provides an overview of the trade losses chapter, mapping out the various types of loss relief available, the restrictions that apply, and key definitions used throughout the chapter.

• The chapter covers seven distinct areas of trade loss relief: relief against general income, early trade losses relief, carry-forward relief, terminal trade loss relief, post-cessation trade relief, restrictions on these reliefs (including capital gains relief), and special rules for trades carried on wholly outside the UK.
• The term "sideways relief" is used throughout the chapter as a collective label for two specific reliefs: trade loss relief against general income and early trade losses relief — both of which allow trading losses to be set against other income of the same or an earlier tax year.
• Where a claim for loss relief spans two or more tax years, the procedural rules in Schedule 1B to the Taxes Management Act 1970 apply.
• An individual may be treated as starting or permanently ceasing a trade, profession or vocation in certain circumstances — for example, on becoming or ceasing to be UK resident, or in the case of a trade carried on by a partnership.