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Hi sir
sorry I’ve got some other questionsQ1: should we make a proportion for AEA in calculating CGT when we have less than 12 month period of account? say the first year of the trade!
Q2: in order to calculate cap on maximum profit that we can have loss relief against, should we exclude capital gain in calculating total adjusted profit or total adjusted profit includes capital gain?? either for company or individual! (I know there is no cap on trading profit)
1. if you are dealing with an individual it does not matter whether that individual is or is not trading the AEA is available in each and every tax year that the taxpayer has gains – it is not time apportioned.
If a company makes a gain then there is no AEA for a company
2. Once again it is essential to differentiate between the rules for companies and the rules for individuals! It is only when dealing with income tax that a loss relief claim made against total income may be restricted
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