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Current year trading loss, partial claims allowed or not?

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Current year trading loss, partial claims allowed or not?

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by JillyB.
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    Posts
  • February 8, 2024 at 11:50 am #699954
    whydoyoucare
    Participant
    • Topics: 50
    • Replies: 46
    • ☆☆

    240 Kaplan kit
    Perth Ltd has had the following results:
    Year ended
    Year ended
    30 April 2022 30 April 2023
    Tax adjusted trading profit/(loss)
    (120,000)
    61,000
    Property income/(loss)
    (28,000)
    27,000
    Interest income
    30,000
    30,000
    Qualifying charitable donations paid
    (10,000)
    (10,000)
    Assuming that Perth Ltd claims loss relief in the most efficient way, select the correct amount of brought forward property and trading losses which will be offset in the year ended 30 April 2023.
    The answer says
    Property losses are automatically offset in the current year against total profits before aCDs, which may lead to the wastage (or part wastage as here) of the QCDs.
    Trading losses do not need to be offset in the current year (and would not be in this case, as this would waste CDs and not save any tax).
    I have read on the study hub too that in current year loss reliefs no partial claims are allowed, so how did we do a partial trading loss claim in 2022 (loss making year)? The answer only used prop loss, and carried forward all off trading loss instead of using it against remaining 2000 of int income.

    February 8, 2024 at 1:50 pm #699960
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    April 2022: Property loss of 28k set off against interest income 30k leaving 2k covered by QCD the rest of the QCD is wasted.
    The trade loss in April 2022 is not set against the current year as the remianing income in that year is covered by QCD – which means that the loss of £120,000 is carried forward to April 2023.

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