Tax Adjusted Trading Losses Example 3

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  1. Avatar of musema musema says:
    November 24, 2012 at 7:16 am

    Losses have to be set off to the max possible extent

  2. Avatar of munaver88msa munaver88msa says:
    November 22, 2012 at 4:39 pm

    i cant open the lectures it redirects me to another page please help

  3. Avatar of chiclarence chiclarence says:
    November 20, 2012 at 8:53 am

    Good day, Question 2 June 2010 exam about Mice ltd; concerns Trading loses for a new business. i have gone through the solution but i dont seem to understand how the losses have been relieved:
    Its like they have been relieved in the 2009, 2008 and then 2007 which is not FIFO and secondly the loss relieved in 2007 is not understood
    thanks

  4. Avatar of Tax Tutor Tax Tutor says:
    June 11, 2012 at 12:04 pm

    It is NOT possible to make a restricted current year or carry back claim in order to avoid wasting the personal allowance! See Chapter 7 section 4 (b) note on page 48 preceding this example. Hope this resolves the issue and sorry for transposition error in taxable income figure for 12/13!

    • Avatar of monica786 monica786 says:
      June 11, 2012 at 12:33 pm

      @Tax Tutor, Thanks – Can I please check, with unincorporated businesses how many years can you go back (ignoring special opening rules). I know for corporated business this will be 12months – CAP. Will this be indefinite?

      Thanks in advance!!

      • Avatar of Tax Tutor Tax Tutor says:
        June 11, 2012 at 1:40 pm

        @monica786, Hi Monica, for a normal continuing business the loss may be used against the total income of the tax year of loss and / or the preceding tax year e.g a loss for the accounting year ended 31 December 2011 would create a nil assessment in the tax year of assessment 2011/12, so may be used if claimed against the total income of 2011/12 and / or 2010/11. The carry back is therefore just ONE tax year! (If 2011/12 was one of the first 4 tax years of assessment then the special opening years’ relief would allow a 3 year carry back). Hope that clarifies it for you – good luck!

  5. Avatar of mhelashini mhelashini says:
    June 4, 2012 at 10:31 pm

    In the 1st example instead of carrying back 42200 is it possible to carry back 34725(42200-7475) and carry forward 13275(48000-34275) so we can benefit the personal allowance of 7475 on 2010/2011 tax year as well

  6. Avatar of shahidchanna shahidchanna says:
    May 20, 2012 at 9:49 am

    there is a mistake in calculation:
    after carry forward of the loss of 5800 from trading profit the figure is 54200 then deducting the personal allowance 54200-7475=46725
    but here in notes and in lecture it is 46275

  7. Avatar of vinitha vinitha says:
    April 20, 2012 at 7:20 am

    thank you very much for making this lecture available for free.its indeed really helpful.
    In example 3 of these notes ,can u plesae expain to me how you derive at 13105,as the tax saving total,for the carry forward option.
    thank you very much in advance

  8. Avatar of mirush mirush says:
    April 4, 2012 at 6:03 pm

    now we have lectures for chapter 7 :>). thank you.

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