Income Tax Act 2007 section 83

Carry forward against subsequent trade profits

Section 83 allows a person who has made a trading loss in a tax year to carry forward the unrelieved portion of that loss and set it against future profits of the same trade.

• A trading loss that has not been fully relieved under other provisions of the Income Tax Acts (or as a capital gains tax loss) may be carried forward to future tax years
• The carried-forward loss can only be deducted from profits of the same trade in which the loss originally arose — it cannot be set against other sources of income
• Carry-forward trade loss relief takes priority over all other reliefs when reducing the trade profits of a future tax year
• The relief applies equally to professions and vocations, not just trades