Income Tax Act 2007 section 73

How relief works

Section 73 sets out the order in which early trade losses claimed under section 72 are deducted from income of the three preceding tax years, and what happens to any remaining unrelieved loss.

• Losses are relieved against the earliest of the three preceding tax years first, then the next year, then the latest year
• At each stage, only the portion of the loss not already used at a previous step is carried forward to the next step
• The amount that can be deducted at each step is subject to the caps imposed by sections 24A and 25(4) and (5)
• Any loss still unrelieved after all three years may be used under a different loss relief provision within the same Chapter