Tx notes fa22 Final

June 2023 to March 2024 exams
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Answer to Example 5 
 
 
If the remaining loss carried forward had been £29,000 instead of £9,000 the claim made would have 
been restricted to £25,000 so as not to waste the qualifying charitable donations of £1,000. Such a 
partial claim is not available for either the current period or carry back claims.
The company could decide to not make a claim in the current period and then previous period, but 
to carry forward all of the loss in order to avoid wasting the qualifying charitable donations paid in 
those periods and then have the benefit of being able to make partial claims against total profits in 
the future. 
The current and carry back claims are of course more beneficial in terms of cash flow. 
y/e 
31/3/20
y/e 
31/3/21
y/e 
31/3/22
y/e 
31/3/23
£
£
£
£
Trading income
40,000
20,000
–
20,000
Property Income
3,000
3,000
3,000
3,000
Interest receivable
4,000
3,000
5,000
3,000
47,000
26,000
8,000
26,000
Current period relief
(i)
(8,000)
Carry back relief / carry forward relief
(ii) (26,000)
(iii)
(9,000)
47,000
–
–
17,000
Less Qualifying charitable donations
(1,000)
–
–
(1,000)
Taxable Total Profits
46,000
–
–
16,000
Unrelieved Qualifying charitable donations
1,000
1,000
Loss memo
£
Loss arising y/e 31/3/2022
43,000
Current year relief
31/3/22
(i)
(8,000)
35,000
Carry back relief
31/3/21
(ii)
(26,000)
9,000
Carry forward y/e 31/3/2023
(iii)
(9,000)
0

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