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for the yr ended 31 march 2025 trading loss is 250k int income is 10k nd qcd is 5k
for the yr ended 31 march 2026 130k int income is 10k nd qcd is 7k
what is loss claimed in yr ended 2026 in most beneficial manner?here what i did is as for yr 2026, i did 130+10-7(as qcd shld not get wasted so )= 133k
so i thought we could claim the whole of 133k so there will be no taxable profit in 2026but in solution they hv don eit this way. 130+10-7-50=83k
they gave the explanation of making a partial claim to bring profits to lower limit of 50k leaving ttp of 50ki didnt understand y r we leaving a minimum of ttp 50k? when we can nuliify the ttp to zero by claiming the whole 133k?
The whole £133,000 can be claimed, which would bring the TTP to zero, but the way the model answer has done it is restrict the loss relief to leave £50,000 of TTP to be taxed at the lower rate of 19% and to preserve as much of the loss as possible to carry forward against profits that would be taxed at the marginal rate (which is higher than 19%). This approach will give the highest amount of tax relief and therefore the most beneficial use of the loss.
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