# Income Tax Act 2007, Section 128: Employment loss relief against general income

Extent: E+W+S+N.I.

(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.
(5A) No claim may be made in respect of the loss if and to the extent that it is made as a result of anything done in pursuance of arrangements the main purpose, or one of the main purposes, of which is the avoidance of tax.
(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).

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/128 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-128
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.