1. avatar says

    Hello, please I am a bit confused and need a further explanation on the option 3 part. i do not understand why the use of 29,450 pounds to calculate the 20% tax savings instead of 32010 pounds. i think I am missing something.

  2. avatar says

    sir , i have a small doubt. i understood how you got the amount ’6,352′ in the answer(option 2) of example 3. but could you please explain why this amount comes under repayment? i thought of it for a long time but i just cant find the reason. thanks

    • avatar says

      That is the amount of tax that you would have already paid to HMRC in the tax year 2012/13. Therefore, if you chose to use the loss relief for that year, you would be entitled to a refund of the tax already paid which would have been taxable income of $(42,100-9440)=$31,760@20%=$6,352.

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