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Trading losses relief

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Trading losses relief

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by AvatarTax Tutor.
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  • August 25, 2017 at 9:02 am #403422
    Avatarandreyseb
    Member
    • Topics: 7
    • Replies: 2
    • ☆

    Dear Sir, I have a question related to the order in which different relifs are set against.
    For example we have 3 years. 1 and 3 years are both loss-making (in terms of trading profit) and year 2 is profitable (in terms of both trading profit and other income). If I haven’t chosen any option what to do with the loss of year 1, then it is carried forward to year 2 to set against trading profit. But I also want to claim to carry back the loss of year 3 to set against general icnome of year 2. In which order will loss releifs be made in year 2? Firstly, we must deduct the carried forward loss and then carried back, right?

    August 26, 2017 at 4:41 am #403580
    AvatarTax Tutor
    Member
    • Topics: 2
    • Replies: 3960
    • ☆☆☆☆☆

    We always apply losses on a chronological basis – a b/f loss is used before a current period loss and a current period loss is used before a loss brought back from the following year. The statement you make above is correct

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