What is the advantage/disadvantage of carrying over a loss?

What is the advantage/disadvantage of carrying over a loss? What does SARS mean by "ring fencing" this profit/ loss?

What type of business do you run?

I am an independent contractor.

Ring-fencing would be more applicable to when you run side business or earn rental income where you cannot carry losses over for a number of years or SARS looks negatively on offsetting these losses against your normal salaried income. If you only receive income from independent contracting then there is nothing to ring-fence against as this is your only income.