F6: Lecture Chapter 22 Corporation Tax: Groups part 2 Group Loss Relief

Dear John,

Thank you very much for the amazing lecture, however I wonder if you could explain to me further about your example of the “Carryback” calculation for the Villa company, when allocate (30,000) loss against the F company current year property income of 30,000, I understand there is QCD of (10,000), but when calculating tax saving, how the figure become 20,000 x 20%, but not nil with the QCD wasted?

I thought the (30,000)loss would off against the property income of 30,000 = total profit Nil, and becaue QCD does not create or increase loss, the (10,000) just wasted.

I hope my question make sense, please be kind enough to explain.
Many thanks