AFMTippletine Come Mar/Jun 18 help?

The tax is calculated in appendix 1 of the answer. Given that in year 1 the taxable profit (calculated in the normal way) is a loss, then there is no tax payable. The tax loss of 14,650 is carried forward and subtracted from the taxable profit in year 2. Since there remains a loss of 7888 then again there is no tax payable and the remaining loss is subtracted from the taxable profit in year 3 which leave a profit of 1034 subject to tax. In future you must ask in the Ask the Tutor Forum if you want me to answer - this forum is for students to help each other.