Paragraph 22

(1)

This paragraph applies if—

(a)

a person makes a loss (“the 2006-07 loss”) in a trade in the tax year 2006-07,

(b)

relief under section 381 of ICTA is not available for the 2006-07 loss because of subsection (4) of that section,

(c)

the person makes a loss (“the 2007-08 loss”) in the trade in the tax year 2007-08,

(d)

(apart from this paragraph) relief under section 72 of this Act is not available for the 2007-08 loss because of section 74(1) of this Act,

(e)

the basis period for the tax year 2007-08 overlaps with the tax year 2006-07, and

(f)

ignoring this Act, subsection (4) of section 381 of ICTA would not have prevented relief under that section being available for the 2007-08 loss.

(2)

Section 74(1) of this Act is not to apply in relation to the 2007-08 loss.

(3)

This paragraph applies to professions and vocations as it applies to trades.