43/89 5.6
32
CAP. 112]
Inland Revenue
[1989 Ed.
assessable income of a person exceeds the amount of his assessable income, the amount of the excess shall, subject to subsection (4), be carried forward and set off against his assessable income in subsequent years of assessment.
(2) The aggregate amount set off against a person's assessable income in subsequent years of assessment shall not exceed the amount of any excess under subsection (1).
(3) Subject to subsection (4), a set off by a person under this section shall first be made against his assessable income for the year of assessment next succeeding the year of assessment in respect of which the excess occurred and, so far as it cannot be so made, against his assessable income for the next year of assessment and so on until the excess has been completely set off.
(4) In the case of a husband and wife, not being a wife living apart from her husband
(a) effect shall be given to section 12(3) before the amount of any excess to be carried forward and set off under this section is computed under subsection (1); and
(b) any excess so computed after effect is given to section 12(3)
shall-
(i) be set off, first in the year of assessment next succeeding the year of assessment in respect of which the excess occurred, primarily against the assessable income of the spouse whose deductions resulted in the excess and then, so far as it cannot be so set off, against the assessable income of the other spouse; and
(ii) then, and so far as it cannot be set off in accordance with subparagraph (i), be set off in the next following year of assessment, primarily against the assessable income of the spouse whose deductions resulted in the excess and, so far as it cannot be so set off, against the assessable income of the other spouse,
and so on from year to year until the excess has been completely set off.
(Replaced 7 of 1975 s. 4. Amended 9 of 1983 s. 9)
12B. Ascertainment of net chargeable income
7
(1) The net chargeable income of a person for any year of assessment shall, subject to subsection (2), be such amount as is arrived at after deducting from his net assessable income-
(a) such approved charitable donations as are provided for under section 12BA; and
Part V
(b) such allowances as are under section 42B(1) permitted for that person.