Income Tax Act 2007 section 64

Deduction of losses from general income

Section 64 allows individuals who carry on a trade, profession or vocation and make a loss in a tax year to claim relief by setting that loss against their general income.

• A trade loss can be set against general income for the loss-making year, the previous tax year, or both — but if both years are chosen, the claim must specify which year's income is reduced first
• If the claim relates to only one year, the taxpayer must specify whether it is the loss-making year or the previous year
• The claim must be submitted on or before the first anniversary of the normal self-assessment filing date for the loss-making year
• Where a claim is made for one year and part of the loss remains unused, a further claim can be made to set the balance against the other year