Commentary on Sections Overview Overview Section 133: How relief works
431.This section explains how deductions for the loss are to be made. It is based on section 574(1) and (2) of ICTA.
432.Subsection (1) states explicitly what is implicit in section 574(1) of ICTA, that:
	the whole amount of the loss must be deducted in calculating the claimant’s net income for the specified tax year; and
	if a claim is made in respect of two tax years, then only so much, if any, of the amount of the loss which it has not been possible to deduct from the claimant’s income for the specified year can be deducted in calculating the claimant’s net income for the other year.
433.This section does not include the words in section 574(1)(a) and (b) of ICTA which limit the amount of the deduction for any tax year to the whole of the claimant’s income for the year, where the income is less than the amount of the loss. That limit is included in section 25(5) and (6). Section 25 explains how the reliefs listed in section 24, which include share loss relief, are to be deducted at Step 2 of section 23 in order to calculate the claimant’s net income.
434.Subsection (5) is new. It makes explicit that the balance of any allowable loss for which share loss relief is not obtained continues to be capable of being claimed as a deduction under TCGA.