OT16150 - PRT: Allowable Losses

Set off against Future Periods (OTA75/S7(1))

To the extent that an allowable loss is not used for a claim under OTA75/S7(2) it must be carried forward against any assessable profits arising in future chargeable periods. This set off is mandatory and must be made as far as possible for the earliest chargeable period following the period for which the loss is determined, notwithstanding the fact that there may be no net liability in that period because of oil allowance or safeguard.

If the profit of the chargeable period subsequent to the one in which the loss was determined is insufficient to absorb the loss, any balance is relieved against the next assessable profit and so on until it is exhausted.