Reliefs entitle taxpayers to reduce the amount of income tax payable. When calculating liability to income tax, a taxpayer may deduct reliefs from total income resulting in a net income figure. In order to utilise the reliefs and allowances to their optimum, loss relief should be set off before the deduction of allowances such as the personal allowance and the blind person’s allowance. While this Practice Note sets out the main types of reliefs for losses currently available under the income tax rules, it does not cover corporation tax. Main types of loss reliefs In computing the income chargeable to income tax, provision is made for the deduction of loss relief, subject to various conditions, as follows: • losses in a trade, profession or vocation, including trades etc carried on abroad, as set out in Chapter 2 of the Income Tax Act 2007 (ITA 2007) and trade loss relief for partnerships as set out in ITA 2007, Ch 3 • property business losses as set out in ITA 2007, Ch 4 • employment losses