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It is hard for me to understand F6/P6 closing rule
For instance 1
year end 31 Dec.2011 profit 54000
year end 31 Dec.2012 profit 23835
year end 30 sep.2013 loss (13500)
overlap profit:8300
The trading loss 2013/14:
(13500)+(8300)=(21800)For instance 2
year end June.2014 loss (20000)
year end Dec.2014 loss (17000)
overlap profit:7600
The trading loss for 2014/15:
(20000)+(17000)+(7600)=(44600)Why the treatment in instance 1 is not 23835+(13500)+(8300) like instance 2?
As you say ” trading loss” therefore not including profit of £23,835 because it is not loss.
$ 23835 from 1 is a profit. You can’t accumulate it with loss. Trading loss can be off set against profits back 3 years – so you can’t include it in the loss calc but you are going to off set loss against profits from previous years. In 2. all are losses it is why they have been accumulated – if not carried back at the year they occured they are carried forward automatically. In 2014 you are allowed to off set 20000 of loss from previous year against 2014 profit, but there is no profit but again loss – it is why you are adding them together
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