- This topic has 2 replies, 2 voices, and was last updated 9 years ago by
.
-
Posts
-
Dear Sir
I was wondering can current years losses be set off against trading profit, property income, interest and chargeable gains?
I don’t understand what same trade means?
I understand than only new and companies that are ceased can take it back for 3 years use lifo and fifo basis but I just don’t seem to understand, could all profits could be relieved or its just trading profit.
Is the same principle used for unincorporated aswell as ltd/Plc ?
Thank youThere are different rules for loss reliefs when dealing with unincorporated trades compared to incorporated – as dealt with in OT notes and lectures.
If a company has made a trading loss in the current accounting period then it may be relieved against the total profits of that period which will include non trading income and gains – clearly there is no trading income as it is loss making!!
If a trading loss is c/f it is then that its use is limited to future trading profits of that same trade – if that trade ceased then any unused trading losses of that trade would then lapse.
You clearly need to refer to the notes and lectures as you are mixing up the loss reliefs available to an incorporated trade with those available for the unincorporated trader!
- You must be logged in to reply to this topic.