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Chapter 17 Carry back relief

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Chapter 17 Carry back relief

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by JillyB.
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  • May 28, 2024 at 12:44 pm #706176
    Jokerrrah
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    I am studying carry back relief of trading losses on page 150 of the textbook, it said “partial claims, for example to leave sufficient profit to cover the qualifying charitable donation, are not allowed. These claims may therefore result in no tax relief being achieved for the qualifying charitable donations.”

    However, in example 1, the answer did partially claim to leave a sufficient amount for QCD in order not to waste the relief. The answer and definition seem conflict and I am struggling right now.

    May 29, 2024 at 2:02 pm #706220
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    Claims are all or nothing. You must make a current year claim first before carry back – thus the QCD cannot be relieved against profits.
    So you either make a claim and lose tax relief for the QCD or you dont – no partial claim

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