Tx notes fa22 Final

nil
.
(b)
The trading profit figure in an income tax computation can never be negative
1.2. Relieving the loss 
The loss may be relieved according to the following rules. A repayment of income tax may result in 
some circumstances.
2. The reliefs available 
The main reliefs available for a trading loss, are as follows:
(a)
Carry forward against future trading profits of the same trade
(b)
Relief against total income of current and/or preceding tax year.
(c)
Following a claim in (b) above if any trading loss still remains, the taxpayer may choose to 
extend the loss claim against chargeable gains of that tax year
(d)
Opening years loss relief against total income of preceding 3 tax years
(e)
Terminal loss relief (on cessation of trading) against previous 3 years trading profits 

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3.
 
Carry forward of trading losses 
(a)
A trading loss may be carried forward and set against the first trading profits arising from the 
same trade.
(b)
The trading loss must be set o
ff
in full against the next available trading profit if this option is 
chosen.
(c)
Any loss remaining is carried forward until further profits arise.
(d)
The loss may be carried forward indefinitely.
 
Example 1 
Albert has had the following recent trading results as adjusted for tax:
Assume that Albert chose to carry forward the loss.
Calculate his assessable amounts for all relevant tax years.