Corporation tax loss

Question 1

Give relief options for trading loss

Answer 1

S37-Offset against total profit before QCDs. Claim on current and prior year and use as much as possible.

S45a- CF against future total profit before QCD and can make partial claims

Question 2

Whats the exam technique for corp tax loss questions (3)

Answer 2

1. Calc TTP after deducting cap allowance and s&b
2. create corp tax proforma with years as columns
3. set up loss memo and set off

Question 3

Describe terminal loss relief

Answer 3

Claim S37 with the 12 month carry back period extending to 36 months on LIFO (offset first year)

Question 4

How do you treat a property loss and capital loss

Answer 4

It is automatically offset against TP before QCDs in current period with excess CF. They are CF and must be claimed

Current year loss offset against chargeable gains in current period with remaining loss carried forward.

Question 5

Give order of priority for loss relief

Answer 5

current period NTLR
current period property
current period trading loss