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First four years special relief

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › First four years special relief

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by JillyB.
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  • February 22, 2024 at 3:45 pm #700894
    Anonymous
    Inactive
    • Topics: 53
    • Replies: 46
    • ☆☆

    Q13 MAX, page #329 , the loss relief for 2021/22 is given against 18/19, 19/20 and 20/21

    Why isn’t it 19/20, 20/21 and 21/22 , don’t we use total income of current tax year?

    Page #238 answer to eg 5

    Loss relief for 2020/21 is seta against 18/19, 19/20, and 20/21 ?
    Which is the correct one? Do we include current year tot income? Or the prev 3 years?

    Special loss relief arising in first 4 tax years

    Suppose trading started on tax year 2018
    Relief is given only for 2018,19,20 and 21 ?
    Loss in 21/22 set against 18/19,19/20,20/21

    Loss in 20/21 set against 19/20, 20/21

    Is it like that? The rule is loss carried back three tax years, but we have applied it differently in both questions.. I didn’t understand..

    February 26, 2024 at 5:12 pm #701203
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    Carry back of losses in the first year of trade – FIFO so 18/19 first.
    This is a separate loss that can be claimed from CY and/or PY

    The rules are clear – follow them. The question may have different circumstances

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