Where loss relief is claimed, the following is the order in which the loss is set against the
taxpayer’s income—
• firstly, against the income of the individual which is of the same class (corresponding
class) as the type of income which would have arisen from the business in
which the loss is sustained had a profit rather than a loss been made,
• secondly, against the other income of the individual,
• thirdly, against income of the individual’s spouse which is of the corresponding
class, and