Kaplan TX–UK: TAXATION (FA2023) Q50

Hi Jilly,

In the following example of individual loss relief why the opening year loss relief selected and not FY or PY

Thanks

Sabine started to trade as a sole trader on 1 April 2022. Her tax adjusted trading
profits/(losses) for the first two years are:
Year ended 31 March 2022 £5,000
Year ended 31 March 2023 (£25,000)
Sabine was employed until 31 March 2022 earning £45,000 per annum. She also receives
£3,000 of savings income every year.
Sabine would like to relieve her loss as early as possible.
Indicate, by selecting the relevant boxes in the table below, the earliest tax year in which
her loss can be offset and how much loss can be relieved in that year?
Earliest tax year Loss relieved
2018/19 £14,000
2019/20 £20,000
2020/21 £22,000
2021/22 £25,00
2022/23

Answer
Earliest tax year Loss relieved
2018/19 £14,000
2019/20 ? £20,000
2020/21 £22,000
2021/22 £25,000 ?
2022/23