S64 Income Tax Act 2007 (ITA 2007)

Relief for trade losses against general income extends to:

(1)losses in trades (including a profession or vocation), provided they are carried on on a commercial basis and with a view to the realisation of profits (S66 ITA 2007);

(2)losses arising out of land – mines, quarries and other concerns – within S12 Income (Trading and Other Income) Act 2005 (see BIM60201);

(3)but not to relief for losses in an employment or office; these are not trade losses (see BIM85090).

This relief is not available for losses of 2013-14 and subsequent years calculated using cash basis, see BIM70000 onwards.

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