Dear Sir,
In example 5 chapter 7.
The total loss was £12000 and you have applied opening year basis to set current year loss against year 2010/11 and 2011/12.
you have set £9000 for 2010/11 opening tax relief which resulted in some personal allowance loss.
in 2011/12 you have selected £3000 with taxable income of £2550
The question is could we select £10000 for 2010/11 and £2000 for 2011/12. By applying this, i think there would be more saving and cash flow into the business and save some personal allowance 2010/11 and reduce the taxable income in 2011/12.
Regards,
Ask the Tutor ACCA TX-UK
chapter 7 example 5
Look at the working in the answer, the losses available for relief from the tax years 2013/14 and 2014/15 are 9,000 and 3,000. The losses are not 10,000 and 2,000 - those numbers do not exist!
sorry i did not understand the £9000 loss where did it come from?
As I said above look at Working 1 where it shows you for each tax year using the relevant basis of assessment for that tax year what amount of loss arises.
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