Tx notes fa22 Final

June 2023 to March 2024 exams
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8. Partnership losses 
(a)
Losses are allocated between partners in the same way as profits.
(b)
Loss relief claims available are the same as for sole traders and each partner may choose their 
own preferred use of their loss
(c)
Partners continuing in a partnership will be able to claim to carry forward their loss, or to set o
ff
against total income of current and / or preceding tax years and thereafter extend against 
chargeable gains.
(d)
A partner joining the partnership may also choose to claim under opening years loss relief, for 
losses in the first four tax years of his membership of the partnership.
(e)
A partner leaving a partnership may also choose to claim under terminal loss relief.
 
Example 3
 
 
John, James and Paul are in partnership making up their accounts to 5 April. During 2022/23 Paul 
left the partnership and George joined in his place.
For the year ended 5 April 2023 the partnership made a trading loss.
State the loss relief claims that will be available to the partners.
Students may now attempt Practice Question 15



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June 2023 to March 2024 exams
Watch free ACCA TX lectures

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79
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