Link Report

To the extent that any loss or any part of a loss sustained by the individual in the tax year is referable to a further deduction given to the individual under section 324, 333, 345, 354 or paragraph 13 of Schedule 32, the amount of the loss or any portion of the loss that is so referable in respect of which relief is given to the individual for the tax year under section 381 less any amount of such loss as is carried forward under section 382.

To the extent that any loss or any part of a loss sustained by the individual in the tax year is referable to capital allowances, being allowances which are specified reliefs, made to the individual for the tax year, the amount of the loss or any portion of the loss that is so referable in respect of which relief is given to the individual for the tax year under section 381 less any amount of such loss as is carried forward under section 382.

Section 382 (right to carry forward losses to future years).

To the extent that any loss or any part of a loss is referable to capital allowances, being allowances which are specified reliefs a specified relief, made to the individual for any previous tax year, the amount of the loss or any portion of the loss that is so referable which is carried forward to the tax year under section 382 and in respect of which the individual is given relief under that section for the tax year less any part of that loss for which relief cannot be given under that section for that year.

Determination of amount of losses carried forward under section 382 which are referable to specified reliefs.

(1) Where, in relation to any trade or profession carried on by an individual, a loss is carried forward from the tax year 2006 to the tax year 2007 in accordance with section 382, then the amount of the loss so carried forward (in subparagraph (2) referred to as the “relief forward”) to be treated as referable to specified reliefs shall, for the purposes of Schedule 25B, be determined for the tax year 2007 in accordance with subparagraph (2).

(1) Subject to this section, where a person has been assessed to income tax for a year of assessment under section 238 in respect of a payment made wholly and exclusively for the purposes of a trade or profession, the amount on which income tax has been paid under that assessment shall for the purposes of sections 382 and 385 to 389 be treated as if it were a loss sustained in that trade or profession and relief in respect of such loss shall be allowed accordingly; but no relief shall be allowed under this section in respect of any such payment or any part of such payment which is not ultimately borne by the person assessed or which is charged to capital.

(5) Notwithstanding any other provision of the Tax Acts, effect shall be given to a deduction or set-off under subsection (4) in priority to any relief under section 382 and any allowance made in respect of the new business in accordance with Part 9.

(vi) where section 382 applies in respect of an individual carrying on a trade or profession, an amount equal to the amount referred to in section 531AU(1), and section 531AU(1),

(1) Where an individual who has sustained a loss in a trade or profession for which relief from income tax has not been wholly given in an earlier tax year carries forward any unrelieved portion of that loss to a later tax year in accordance with section 382, the amount referred to in section 531AM(1)(b)(vi) is an amount equal to the amount of the carried forward loss that is deducted from or set off against the amount of profits or gains on which the individual is assessed to income tax under Schedule D in respect of that trade or profession for that later tax year.

(6) (a) Notwithstanding section 382, to the extent that relief has not been fully given under subsection (4) in respect of a relevant loss due to the interim amount of tax payable by the claimant for the tax year being less than the tax credit provided by that subsection, the claimant may claim that the unused portion of the tax credit (in this section referred to as the “excess tax credit”) shall be carried forward and, insofar as may be, used to reduce the amount of tax payable on the profits or gains on which that person is assessed under Schedule D in respect of the combined trade for any subsequent tax year.

(8) (a) Where a claim under section 382 is made in respect of a relevant loss, or part of a relevant loss, sustained in a tax year before the tax year 2009 (other than a relevant loss to which a claimant is entitled to a repayment of tax under subsection (4)) then, notwithstanding subsection (1) of that section, unless the claim is made to and received by the Revenue Commissioners before 7 April 2009, that subsection shall not apply, and instead the claimant shall, in relation to the amount of the relevant loss to which the claim relates, be entitled to carry forward a tax credit determined in accordance with paragraph (b).

where E is the relevant loss, or the part of the relevant loss, in respect of which the claim under section 382 relates.

(11A) As respects the year of assessment 2001, subsection (11) shall apply as if in that subsection “74 per cent of one-third of the amount of such excess” were substituted for “one-third of the amount of such excess” and, where this subsection applies, the individual may claim that 26 per cent of one-third of the amount of the excess referred to in subsection (11) shall, notwithstanding anything to the contrary in that subsection, be carried forward under section 382 for deduction from or set-off against the profits or gains of the individual from farming for any subsequent year of assessment.

(3) Any person chargeable with income tax in respect of the profits or gains of any trade or profession which has been set up and commenced within the year next before the year preceding the year of assessment shall be entitled, on giving notice in writing to the inspector with the return required under section 951 for the year of assessment, to have the assessment on including a claim in that behalf with the return required under section 951 Chapter 3 of Part 41A for the year of assessment reduced by the amount (if any) by which the amount of the assessment for the year preceding the year of assessment exceeds the full amount of the profits or gains of that preceding year; but, where the excess is greater than the amount of the assessment, the difference between the excess and the amount of the assessment shall be treated for the purposes of section 382 as if it were a loss sustained in a trade in that year of assessment.

(2) No relief shall be given under section 382 in respect of a loss to which this section applies by deducting such loss from or setting it off against the amount of the profits or gains from farming assessed for any year of assessment.

(i) under section 382 for any year of assessment later than the relevant year in respect of a loss sustained in the trade before the commencement of the relevant year, or

(i) the person charged or chargeable with income tax in respect of the trade or profession shall be charged for that year on the amount of the profits or gains of the period beginning on the 6th day of April in that year the first day of the year of assessment and ending on the date of the discontinuance, subject to any deduction or set-off to which such person may be entitled under section 382 and, if such person has been charged otherwise than in accordance with this paragraph, any tax overpaid shall be repaid, or an additional assessment may be made on such person an assessment made on or by such person may be amended, as the case may require;

(ii) if the full amount of the profits or gains of the year of assessment preceding the year of assessment in which the discontinuance occurs exceeds the amount on which that person has been charged for that preceding year of assessment, or would have been charged if no such deduction or set-off to which such person may be entitled under section 382 had been allowed, an additional assessment may be made on such person an assessment on or by such person may be made or amended, so that such person shall be charged for that preceding year of assessment on the full amount of the profits or gains of that preceding year of assessment, subject to any such deduction or set-off to which such person may be entitled.