# Income Tax Act 2007, Section 153: How relief works

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

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 relevant miscellaneous income for the loss-making year.
Step 2
Deduct from the relevant 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 relevant miscellaneous income for subsequent tax years until all the loss is deducted.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/153 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-153
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.