TLR QUESTION

hoff1

HI i am just wondering could anyone help me i did this question and came up with an answer of (113250) loss wasted. im not to sure if its right could anyone confirm that its right, please
commenced trade 1/1/03
A/p y/e 31/12/2003 CI 44,000 CV5,000
A/p p/e 30/05/2004 CI (40,000) CV 6,000
A/p p/e 31/12/2004 CI 60,000 CV 6,000
A/p y/e 31/12/2005 CI 65,000 CV 5,000
A/p p/e 30/09/2006 CI (50,000) CV 6,000
A/p y/e 30/09/2007 CI 65,000 CV 7,000
A/p p/e 31/03/2008 CI (250,000) CV 6,000

fighterman

Calc

First loss is in a/p 30/05/2004

1. Set this back against Case 1 income of a/p y/e 31/12/2003
2. Use losses to obtain tax credit against CT on Case V income of a/p 30/05/2004 on a value basis
3. Use losses to obtain tax credit against CT on Case V income of a/p 31/12/2003 on a value basis
4. carry forward balance of losses to a/p 31/12/2004

Howver, accounting period only 5 months in length so can only be carried back against 5 months

So,
1. (44,000*5/12, 5 months of prev. a/p) 18,333 can be set back against a/p 31/12/03
2. Case V income 6,000 @ 25% =1,500 use 12,000 @ 12.5% against this

3. Previous Case V income 5 months (5/12*5,000) 2,083 @ 25% = 520 use 4,166 @ 12.5% against this

4. Remaining loss = 40,000-18,333-12,000-4,166 = 5,000, reduce a/p 31/12/04 Case 1 by 5,000 to 55,000

All loss used

Next loss a/p 30/09/06

1. a/p 31/12/05 (65,000*9/12) = 48,750 can be utilised, leaves 1,250 to set against current case V income on a value basis
2. 5,000 @ 25% = 1,250 less 1,250@ 12.5% 156

All loss used

Next loss a/p 31/03/08

1. a/p 30/09/07 65,000* 6/12 = 32,500 can be utilised
2. Use remaining loss against Case V income of current period

6,000 @ 25% less 12,000 @ 12.5%

3. Use remaining loss against Case V income of prev. period

7,000 @ 25% less 14,000 @ 12.5%

So, 250,000- 32,500 - 12,000- 14,000 = 191,500 available for carry forward

hoff1

thanks but i think case v 30/09/07 should be 7000*6/12 *2 and
also case v of 12000 has been used (set sideways 6000*2)30/09/06 therefore 65k -38k(50k-12k) =27k case i leaving case v 5k loss goin fwd 198500

fighterman

thanks but i think case v 30/09/07 should be 7000*6/12 *2 and

Yes, you're right


also case v of 12000 has been used (set sideways 6000*2)30/09/06 therefore 65k -38k(50k-12k) =27k case i leaving case v 5k loss goin fwd 198500 Not sure what you mean by this bit

hoff1

as you have a loss of cv 12k used in the year you made the 50000 loss this must be taken from the 50000 lost first ie 50000-12000= 38000 therefore you cant use the 48750 as you only have 38000 of a loss left to use so 65000-38000 =27000