Relief is available for losses arising from ‘relevant transactions’. This is to be given as a deduction in computing a person’s relevant miscellaneous income for the year of the loss (ITA 2007, s. 152(1)).

Relevant transactions are those which, if a profit or other income had arisen, would be chargeable to income tax under or by virtue of a relevant section 1016 (ITA 2007, s. 152(2)) but excluding SI 2009/3001, reg. 17 (offshore income gains) and ITTOIA 2005, Pt. 4, Ch. 9 (gains from contracts for life insurance etc.) (ITA 2017, s. 152(2A)).

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