# Income Tax Act 2007, Section 84: How relief works


This section explains how the deductions are to be made. The amount of the unrelieved loss to be deducted at any step is limited in accordance with section 25(4) and (5).
Step 1
Deduct the unrelieved loss from the profits of the trade of the next tax year.
Step 2
Deduct from the profits of the trade of the following tax year the amount of the unrelieved loss not previously deducted.
Step 3
Continue to apply Step 2 in relation to the profits of the trade of subsequent tax years until all the unrelieved loss is deducted.

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Source: https://www.legislation.gov.uk/ukpga/2007/3/section/84 (the official version)
Page: https://openlegislation.uk/income-tax-act-2007/section-84
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.