This section explains how the deductions are to be made. The amount of the loss to be deducted at any step is limited in accordance with section 25(4) and (5).

Step 1

Deduct the loss from the F1relevant miscellaneous income for the loss-making year.

Step 2

Deduct from the F1relevant miscellaneous income for the next tax year the amount of the loss not previously deducted.

Step 3

Continue to apply Step 2 in relation to F1relevant miscellaneous income for subsequent tax years until all the loss is deducted.