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Losses in closing years – ACCA Taxation (TX-UK) Exam FA2019

VIVA

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  1. Hello Sir,
    Re example 6 on reading text
    Terminal loss relief gave only 24000, but actual loss is 25000.
    If i am not wrong, is this 1000 is still available for relief on current total income relief as usual procedure for ongoing business ( current and/or preceding year) or this 1000 is wasted since we adopted terminal lost relief.

  2. Hi,

    Thanks for the great content, I have one question however.

    When computing the final 12 months loss in the Donald Example, we saw that the £1,000 profit was added in the final year Assessment (19/20). However as this amount would have been included in the CYB assesment of £6,000 profit for Tax year 18/19, does this not lead to further overlap issues to be added to the final loss?

    Or am I totally missing something here?

    • Hi,
      According to my understanding, 1000 is not added into the assessment of profits or losses of final tax year. It doesn’t have anything to do with assessments.
      1000 is added to arrive at the terminal loss relief, just the relief computation.

      As per assessment of trading profits and losses, the loss for final period to the cessation date of 31 May will be 25,000 (20,000+ 5000 overlap relief) . The assessment would therefore be NIL.The loss amount considered for all other reliefs (except terminal relief) would be 25,000.

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