Tx notes fa22 Final

Note 1
Betty
(b)
Total
Anne
Betty
Chloe
A/C year ended 31/12/2022
60,000
1/1/2022 – 30/6/2022
(6/12 x 60,000) PSR1:1
30,000
15,000
15,000
1/7/2022 – 31/12/2022
(6/12 x 60,000) PSR 2:1
30,000 20,000
10,000
60,000
35,000
15,000
10,000
A/C year ended 31/12/2023
72,000 
PSR 2:1
48,000
24,000
Assessments
£
Anne
2022/23 (CYB)
A/C year ended 31/12/2022 
35,000
2023/24 (CYB)
A/C year ended 31/12/2023
48,000
Betty
(note 1)
2022/23 
6 months to 30/6/2022
15,000
Less: Overlap relief
(3,000)
12,000
Chloe
(note 2)
2022/23 (Actual)
(1/7/2022 – 5/4/2023)
10,000 + (3/12 x 24,000)
16,000
2023/24 (CYB)
A/C year ended 31/12/2022
24,000

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Betty ceased trading on 30/6/2022 so her final tax year of assessment is 2022/23 in which she 
will be assessed on all remaining profit as yet not assessed less her overlap relief. Therefore in 
the preceding tax year, 2021/22 she would have been assessed on her normal CYB i.e. on her 
share of the profit of the accounting year ended 31/12/2021. The only remaining profit to be 
assessed is therefore for her final 6 months of trading to 30/6/2022 which is then reduced by 
the available overlap relief.
Note 2
Chloe
Chloe commenced trading on 1 July 2022 so her first tax year of assessment is 2022/23 in 
which an actual basis applies. She is able to use CYB from 2023/24 which will generate an 
overlap profit of £6,000 (3/12 x 24,000).
(c)
(1)
Daniel and Frank can carry the loss forward against future trading profits.
(2)
Daniel, Elvis and Frank can claim against total income for 2022/23 and/or 2021/22 
(3)
Frank can claim against total income for 2019/20, 2020/21 and 2021/22. (Special 
opening year loss relief).
(4)
Elvis can claim against trading profit for 2021/22, 2020/21 and 2019/20. (Terminal 
loss relief).

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