{
  "url": "https://openlegislation.uk/income-tax-act-2007/section-74",
  "json_url": "https://openlegislation.uk/income-tax-act-2007/section-74.json",
  "legislation": "ukpga/2007/3",
  "legislation_title": "Income Tax Act 2007",
  "legislation_url": "https://openlegislation.uk/income-tax-act-2007",
  "path": "section/74",
  "kind": "section",
  "number": "74",
  "heading": "Restrictions on relief unless trade is commercial etc",
  "text": "(1) Early trade losses relief for a loss made by an individual in a trade in a tax year is not available unless the trade is commercial.\n(2) The trade is commercial if it is carried on throughout ... the tax year—\n(a) on a commercial basis, and\n(b) in such a way that profits of the trade could reasonably be expected to be made in the tax year or within a reasonable time afterwards.\n(3) If the trade forms part of a larger undertaking, the reference to profits of the trade is to be read as a reference to profits of the undertaking as a whole.\n(4) Early trade losses relief for a loss made by an individual is not available if—\n(a) the individual first carries on the trade at a time when the individual has a spouse or civil partner and is living with the spouse or civil partner,\n(b) the spouse or civil partner previously carried on the trade, and\n(c) the loss is made in a tax year falling after the relevant 4 year period.\n(5) The relevant 4 year period comprises—\n(a) the tax year in which the spouse or civil partner first carried on the trade, and\n(b) the next 3 tax years.\n(6) This section applies to professions and vocations as it applies to trades.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 74(2) omitted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by virtue of Finance Act 2022 (c. 3), Sch. 1 paras. 44(a), 61(1)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 74(2)(b) substituted (6.4.2024 for the tax year 2024-25 and subsequent tax years) by Finance Act 2022 (c. 3), Sch. 1 paras. 44(b), 61(1)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2007/3/section/74",
    "retrieved_at": "2026-10-29T09:13:03.599581+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}