Trading Losses

Question 1

What if the basis period for a tax year has a trading loss?

Answer 1

The trading profit assessment to include in the income tax computation is nil

Question 2

What can the trading profit figure never be?

Answer 2

Negative

Question 3

Repayment of income tax and profits?

Answer 3

c/f against future trading profits of the same trade

Question 4

Repayment of income tax and relief?

Answer 4

Relief against total income of current and/or preceding tax year

Question 5

Repayment of income tax and trading loss remains?

Answer 5

Taxpayer may choose to extend the loss claim against chargeable gains of that tax year

Question 6

Repayment of income tax and opening years?

Answer 6

Opening years loss relief against total income of preceding 3 tax years

Question 7

Repayment of income tax and terminal loss?

Answer 7

Terminal loss relief against previous 3 years trading relief