S72 ITA 2007 applies where an individual (either as sole proprietor or as partner but not a trustee) makes a loss in the tax year in which he or she starts to trade or in any of the three succeeding tax years. This relief is not available for losses of 2013-14 and subsequent years calculated using cash basis, see BIM70000 onwards.
The individual may claim that the loss is relieved as far as possible by deducting it from his or her total income for the three tax years before the one in which the loss is made, the earlier years being taken in priority to the later.
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