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Most beneficial loss relief claim

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Most beneficial loss relief claim

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by JillyB.
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  • June 1, 2024 at 10:35 am #706367
    ilham9089
    Participant
    • Topics: 301
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    • ☆☆☆

    What is the most beneficial loss relief for companies when they carry forward the loss and can make a partial claim?

    June 1, 2024 at 2:15 pm #706385
    JillyB
    Keymaster
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    • Replies: 899
    • ☆☆☆☆

    That’s impossible to answer and will depend on the context of the question.
    Simply learn the rules and apply the correct rule in the question

    June 2, 2024 at 1:48 am #706420
    ilham9089
    Participant
    • Topics: 301
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    • ☆☆☆

    Yes but in the notes it says that if loss can be restricted then the most beneficial would be to bring down profits taxed at the marginal rate to the lower profit limit. Why not just use the entire loss relief to lower the total amount of tax paid

    June 2, 2024 at 1:41 pm #706451
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    This is correct – bring a marginal company down to the lower rate 19% and then use the balance to save tax on any company paying CT at the full rate 25% – common sense

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