Part 4Loss relief
Chapter 4Losses from property businesses
Property loss relief against general income
120Deduction of property losses from general income
1
A person may make a claim for property loss relief against general income if—
a
in a tax year (“the loss-making year”) the person makes a loss in a UK property business or overseas property business (whether carried on alone or in partnership), and
b
the loss has a capital allowances connection or the business has a relevant agricultural connection.
2
The claim is for the applicable amount of the loss to be deducted in calculating the person's net income—
a
for the loss-making year, or
b
for the next tax year.
(See Step 2 of the calculation in section 23.)
3
The claim must specify the tax year for which the deduction is to be made.
4
But if the applicable amount of the loss is not deducted in full in giving effect to a claim for the specified tax year, the person may make a separate claim for property loss relief against general income for the other tax year.
5
For this purpose “the other tax year” means the tax year which was not specified in the claim already made, but which could have been specified.
6
This section needs to be read with—
a
section 121 (how relief works),
b
section 122 (meaning of “the applicable amount of the loss”),
c
section 123 (meaning of “the loss has a capital allowances connection” and “the business has a relevant agricultural connection”), and
d
section 124 (supplementary).