why do we take higher of £105000-43000=62000 or (8/12*96000=64000

Show me how you would answer the question

the answers says the maximum loss relief is greater of remaining loss £105000-£43000 profits for 8 months ended 31.8.14 £64000(96000*8/12) i dont understand the calculation

I appreciate that you do not understand their answer - though you should if you've studied Chapter 18 on CT losses and worked example 3 - if you still don't understand after reviewing that and the precise words of this question then show me your answer so that I can see the mistake that you are making and then put you right

Me again - just clicked reply before I had written last part of answer, which is to just check the wording of the answer that you have stated above in case that is your query rather than the calculations? The max loss that can be relieved is remaining loss (105,000 - 43,000 = 62,000 restricted to a max of 8/12 x 96,000 = 64,000. Therefore I hope that they are showing 62,000 as the answer. If it is the wording of the answer "greater of" rather than as you say "the calculation", then I understand your query, if they have given 64,000 as the answer then it is wrong. Again show me your answer if different to what I have just stated. It's a strange question as I would have expected the time apportioned figure of the period's profit (8/12) to be lower and hence the point of the question - whose question is it?

yes i dont understand why they show the word greater

The word greater is wrong - it should say that the remaining loss of 62,000 is restricted to a maximum 64,000 (8/12 x 96,000) - did you get this answer and was the answer given as 62,000

yes

That's great! Where did the question come from?