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Regarding question I can’t understand how he got 74,000 answer a.
I taught the answer was (24,000+ 92,000) =116,000 so he could right off 110,000 ?13 Naomi is self-employed. For the year ended 5 April 2015 she made a trading loss of £110,000, having made a trading profit of £24,000 for the year ended 5 April 2014. Naomi also had employment income of £92,000 for the tax year 2013–14.
What is the maximum loss relief claim which Naomi can make against her total income for the tax year 2013–14?
A £74,000 B £50,000 C £110,000 D £29,000Look at OT study notes page 49 section 4 (c) which explains and illustrates the 50,000 cap that applies to the use of the trading loss against the non trading part of the total income. It means that in the above example for 13/14 the trading profit of 24,000 is fully relieved but the 50,000 cap then applies in relation to the 92,000 employment income.
Hence 24.000 + 50,000 = 74,000
Have you looked at the answers I did to the June exam?
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