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Hi sir,
Q: The cap (higher of 50 000 or 25% of adj. total profits (after gross personal pension deduction)) is used against total profits (including trading profits) in current year AND against total profits (excluding trading profits) in preceding year. is that right?
NO cap on trading profits in 2nd year only right? or in both?? it is very misleading in notes and lecture.The reliefs are against total income not total profits and there will be NO trading profits in the current year of assessment as this is the tax year of LOSS hence NIL assessment. If the relief is applied in the preceding tax year then the cap applies only to the non trading income – all of which is shown in the illustration Louise Serr.
I regret that you find my efforts to explain in both the notes and lectures misleading.
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