Hi Sir,
I have this question regarding loss relief.
.....................................y/e 31.3.12.......y/e 31.3.13......9mths to 31.12.13.......y/e 31.12.12
Trading profit/(loss)......40,000.............6,500............. 4,500..............(100,000)
Bank deposit interest....200....................80................240................... 260
Capital gain.....................0.....................0...............12,680...............-
Allowable capital loss...5,000.................0..................-.....................9,423
Gift aid donation..........1,000..................0.................1,000...........1,500
I read my book, it says capital loss can be only set against capital gain in the same or future accounting periods. In this case, the trading loss would be carried backwards 12months, and what about the capital loss? the 5000.
Ask the Tutor ACCA TX-UK
Capital loss
As you stated a capital loss will firstly be set off against gains in the same accounting period and then any unused loss will be C/F. This is a very different rule to those that apply to the use of trading losses. In the above question therefore the capital loss of 5,000 will be c/f to set off against the next gains that arise, which is the 12,680 in the period to 31.12.13 and this will apply before the trading loss of the next accounting period is carried back for use in the period to 31.12.13
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