• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2025 exams.
Get your discount code >>

Loss relief for single companies

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Loss relief for single companies

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 1, 2022 at 6:28 am #652480
    tabasumze
    Participant
    • Topics: 40
    • Replies: 48
    • ☆☆

    Bpp workbook(FA2020) pg.404, illustration no.2
    Monster Ltd has the following results:
    Year ended Trading profit/(loss) Chargeable gains QCD
    31.3.18 2000 35,000 (30,000)
    31.3.19 (500,000) 250,000 (20,000)
    31.3.20 100,000 30,000 (20,000)
    31.3.21 120,000 45,000 (20,000)

    Solution:
    After relieving the loss in the current period, carry back relief claim can also be made for the year ended 31 March 2018.
    This will be against total profits of (35,000+2000)= 37,000.
    This claim will waste QCD of 30,000 and so would use 37,000 of loss to save tax at 19% on 7,000 (35,000+2000-30,000).
    A carry back claim should therefore not be made.

    My question is, if carry back claim saves tax at 19% on 7000 (i.e.1,330), why is carry back claim not made?
    If the answer is to use up QCDs against total profits, using up QCDs will result in payment of Corporation tax at 19% on 7,000.
    Is it not a better option to make a claim to carry back and waste QCDs just to save tax at 19% on 7,000?

    April 5, 2022 at 12:05 pm #652739
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    In a word – No – the best option would be to carry forward the loss in order to not waste any of it – did the answer not explain that?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on What is Assurance? – ACCA Audit and Assurance (AA)
  • Ejueyitsi-Toju on What is Assurance? – ACCA Audit and Assurance (AA)
  • sadik.sadka on How to make the best use of OpenTuition
  • SONIC916 on Lessee accounting – ACCA (SBR) lectures
  • AkinMike on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in