TaxSource Total

Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

The report of key tax developments are displayed per year, per month, by Ireland, the UK or International and by report title

Income tax relief for losses incurred in a trade or profession – TDM updated

Revenue updated the Tax and Duty Manual (TDM), which contains guidance on the legislative provisions that provide for income tax relief for losses incurred in a trade or profession. The TDM also provides an overview of the provisions that restrict loss relief in certain circumstances.

Revenue eBrief No. 176/20 confirmed the TDM Part 12-01-02 – Income tax relief for losses incurred in a trade or profession – has been updated as follows:

  • to include reference to the temporary income relief for self-employed individuals, which was introduced in the Financial Provisions (Covid-19) (No.2) Act 2020. (paragraph 2.4)
  • to confirm that where loss relief is given under section 381, the amount by which the loss reduces a particular class or source of income will be regarded as a specific deduction made from that class or source of income in computing the individual’s total income for the year. (paragraph 4.0)
  • to include guidance on the application of section 403(3), which provides that the set-off of surplus capital allowances against other income is generally not available in the case of leasing capital allowances. (paragraph 5.4.1)