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Dear Sir,
I have a question; in the lecture Chapter 7 point 4 Example 2 you mention that we can regressively apply a trading loss (in this case Ye 2016 to be applied to Ye 2014/15)
However, when you get your tax assessment, over the year making a profit, are you not at one point required to pay your taxes?
Therefore how can you “relieve” taxes on previously asses years?Hope the question is clear, thank you for your answer.
Kr.
When you choose to carry a loss back to the preceding tax year then if the tax for that year has already been paid (it probably will have been paid as you note), then the taxpayer will receive a repayment from HMRC for the amount of tax reduction that the loss relief achieves for that tax year.
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