391. Losses from miscellaneous transactions.

Where in any accounting period1 ('the loss-making period') a company makes a loss in a transaction in respect of which income arising from it would be miscellaneous income of the company2, the company's miscellaneous income of the loss-making period is reduced by the loss3 and so far as the loss cannot be so used, the loss is carried forward to subsequent accounting periods and the company's miscellaneous income of any such period is reduced by the loss so far as it cannot be used to reduce miscellaneous income of an earlier accounting period4.

Where a company sustains a loss on