Tx notes fa22 Final

June 2023 to March 2024 exams
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Answer to Example 6
 
Trading loss arising in final 12 months of trading available for terminal loss relief is calculated as:
The loss of £24,000 would then be set o
ff
against the trading profits of firstly 2022/23 of £6,000 
leaving the remaining £18,000 to be used against the £28,000 trading profit assessment of 2021/22.
2023/24
6/4/2023 –31/5/2023
2⁄10 
×
(20,000)
(4,000)
Overlap Relief
(5,000)
2022/23
1/6/2022 – 5/4/2023
2/12 
×
6,000
1,000
+ 8⁄10 
×
(20,000)
(16,000)
(15,000)
Trading Loss available under terminal loss relief
(24,000)

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240
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June 2023 to March 2024 exams
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Chapter 8
 
 
Answer to Example 1
 
 
 
 
Each partner will then be assessed on their share of the profit in 2023/24, as the partners are 
continuing the trade the normal CYB assessment will apply.
Total
Doug
Rob
£
£
£
A/C Year Ended 30/9/2023
18,000
1/10/2022 to 30/6/2023
(Profits £18,000 
×
9/12 = 13,500)
Salaries (9/12)
3,750
2,250
1,500
Balance (3:2)
9,750
5,850
3,900
13,500
8,100
5,400
1/7/2023 to 30/9/2023
(Profits £18,000 
×
3/12 = 4,500
Salaries (3/12)
2,500
1,500
1,000
Balance (2:1)
2,000
1,333
667
4,500
2,833
1,667
Total allocation
18,000
10,933
7,067

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Answer to Example 2
 
 
Allocate the trading income for accounting periods between the partners.
Profits will be allocated between the partners as follows:
Compute each partner’s trading income as though they were a sole trader.
Ann and Beryl will both be assessed as follows, based upon a commencement on 1 July 2021:
They will both carry forward overlap profits of £4,500 that arise between 2021/22 and 2022/23.
Clair will be treated as commencing trading on 1 July 2023, and will be assessed on her share of the 
partnership profits as follow:
She will carry forward overlap profits of £6,000
Answer to Example 3
 
 
 
 
Paul will be entitled to terminal loss relief since he has actually ceased trading.
George will be entitled to claim opening years relief since he has actually commenced trading.
John and James will not be entitled to either of the above reliefs. 
All the partners will be entitled to relief against total income of the current and/or previous tax year 
and against gains. 
All the partners except Paul will be entitled to carry forward relief.
Total
Ann
Beryl
Clair
£
£
£
y/e 30/6/2022
12,000
6,000
6,000
–
y/e 30/6/2023
14,000
7,000
7,000
–
y/e 30/6/2024 
24,000
8,000
8,000
8,000
£
2021/22 (Actual)
1 July 2021 to 5 April 2022 (6,000 
×
9/12))
4,500
2022/23 (CYB)
Year ended 30 June 2022
6,000
2023/24 (CYB)
Year ended 30 June 2023
7,000
2024/25 (CYB)
Year ended 30 June 2024
8,000
2023/24 (Actual)
1 July 2023 to 5 April 2024 £8,000 
×
9/12
6,000
2024/25 (CYB)
Year ended 30 June 2024
8,000

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