A special relief (‘early trade losses relief’) applies to losses sustained in the tax year in which a trade is first carried on, or in any of the next three tax years. Such losses may be carried back and set against the claimant’s income in the three tax years preceding that in which the loss was sustained (ITA 2007, s. 72). The determination of the date of commencement is discussed at ¶202-500ff.

The relief applies to professions and vocations as it does to trades (ITA 2007, s. 72(4)).

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