[sardonis]

Thanks for attention. I understand the relevant options but none of them seems to apply to illustration 1. I know we can set losses of against future profit of the same trade or set it against current or previous year ‘s net profit from all sources but in Illustration 1 part of the loss is set against trading profit of a previous year. It means that you can actually set off your trading losses against previous or future profits. In the book there is ONLY option to carry forward your losses to the future unless it is termination loss. It was not the case in Illustration 1. Analysing carefully Illustration 1 I am really unsure how you can apply your trading loss to the previous year’s trading profit. Can you do it as you wish or after using your limit for other income ? it is not clear. I am aware that a few Covid years have that kind of election introduced but again in Illustration 1 this is year 2023 which as far as I know do not have that election. It is all not clear.

[sardonis]

I think I can answer myself after closer look at the notes provided. The answer is yes and the higher rate band is irrelevant because CGT has only 2 different levels differentiated by basic rate band figure.

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