Part 4

Loss relief
Chapter 7

Losses from miscellaneous transactions

Loss relief against miscellaneous income

Losses from miscellaneous transactions
152
1
A person may make a claim for loss relief against miscellaneous income if in a tax year (“the loss-making year”) the person makes a loss in any relevant transaction.
2
A transaction is a relevant one if, assuming there were profits or other income arising from it—
a
those profits or that other income would be section 1016 income, and
b
the person would be liable for income tax charged on those profits or that other income.
3
The claim is for the loss to be deducted in calculating the person’s net income for the loss-making year and subsequent tax years (see Step 2 of the calculation in section 23).
4
But a deduction for that purpose is to be made only from the person’s miscellaneous income.
5
A person’s miscellaneous income is so much of the person’s total income as is—
a
income or gains arising from transactions, and
b
section 1016 income.
This is subject to subsection (6).
6
If the loss was made by the person as a partner in a partnership, the transactions covered by subsection (5)(a) are limited to transactions entered into by the partnership.
7
In calculating a person’s net income for a tax year, deductions under this section from the person’s miscellaneous income are to be made before deductions of any other reliefs from that miscellaneous income.
8
In this section “section 1016 income” means income on which income tax is charged under or by virtue of any provision to which section 1016 applies.
9
This section needs to be read with—
a
section 153 (how relief works),
b
section 154 (transactions in deposit rights), and
c
section 155 (claims).