Income Tax Act 2007 section 84

How relief works

Section 84 explains how trade loss relief is applied by carrying forward unrelieved losses and deducting them from future trade profits in a prescribed sequence.

• Unrelieved trade losses are carried forward and deducted from the trade profits of the next tax year first
• Any loss still remaining after that deduction is then set against the trade profits of the following tax year
• This process continues year by year until the entire unrelieved loss has been used up
• The amount that can be deducted in any given year is subject to the limits set out in section 25(4) and (5)