128Employment loss relief against general incomeU.K.
(1)A person may make a claim for employment loss relief against general income if the person—
(a)is in employment or holds an office in a tax year, and
(b)makes a loss in the employment or office in the tax year (“the loss-making year”).
(2)The claim is for the loss to be deducted in calculating the person's net income—
(a)for the loss-making year,
(b)for the previous tax year, or
(c)for both tax years.
(See Step 2 of the calculation in section 23.)
(3)If the claim is made in relation to both tax years, the claim must specify the year for which a deduction is to be made first.
(4)Otherwise the claim must specify either the loss-making year or the previous tax year.
(5)The claim must be made on or before the first anniversary of the normal self-assessment filing date for the loss-making year.
(6)Nothing in this section prevents a person who makes a claim specifying a particular tax year in respect of a loss from making a further claim specifying the other tax year in respect of the unused part of the loss.
(7)This Chapter is subject to paragraph 2 of Schedule 1B to TMA 1970 (claims for loss relief involving two or more years).
(8)This section needs to be read with section 129 (how relief works).