Section 872: Losses calculated on same basis as miscellaneous income
3286.This section is based on numerous provisions, including section 827 of ICTA.
3287.The application of the section is limited to “miscellaneous income”, defined in subsection (3) by reference to section 836B of ICTA (that section is inserted by paragraph 340 of Schedule 1 to this Act). The source legislation does not generally limit the scope of the rule. For example, section 827(1) of ICTA says “the payment shall not be allowed as a deduction in computing any income, profits or losses for any tax purposes”. But in practice these provisions affect only the calculation for income tax purposes of amounts, other than profits within Parts 2 or 3 of this Act, chargeable under a provision listed in the table in section 836B of ICTA.
3288.Subsection (2) ensures that this rule does not overturn any rules already provided for the computation of losses. For example, see section 398 of ICTA (which supplements the calculation of losses for the purposes of a claim under section 392 of ICTA).
3289.See the related commentary for section 26 of this Act.