Losses in Opening Year Flashcards
1
Q
What happens in first four tax years of trade?
A
A special loss relief for losses
2
Q
Loss is carried back?
A
Loss carried back three tax years on a FIFO basis against total income
3
Q
One claim?
A
One claim applies to all three years and may generate a refund of income tax
4
Q
Relief?
A
Relief is all or nothing, cannot be restricted to reserve PA
5
Q
Why are there no overlap losses?
A
As losses can only be relieved once
6
Q
Calculating a trading loss in the opening year rules apply?
A
The normal opening year basis of assessment rules apply to profits and losses
