Hello practise question 34 jenny why we dont deduct capital loss from warehouse (50000) from the gain arising from selling of investment asset (80000). We deduct only the loss which brought forward(15000)
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34 Jenny
The loss on the sale of the warehouse must be netted off against the gains arising on the disposal of the other TRADING assets in the business and the resulting net gain is then eligible for entrepreneurs relief (ER).
The gain on the investment asset is however separated out as it is not eligible for ER but is then able to enjoy the deduction of any other capital losses (in this example the b/f losses) and the deduction of the AEA.
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