Commentary

D1.1104A Prior year trading loss relief—example

Corporate tax
Corporate tax | Commentary

D1.1104A Prior year trading loss relief—example

Corporate tax | Commentary

D1.1104A Prior year trading loss relief—example

This example illustrates the carry back of losses to periods which are not 12 months in length as detailed in 'Carry back relief for trading losses' in D1.1104.

Example 1

A Ltd had previously made up accounts to 31 March but changed its accounting date to 31 December in 2017. The results for the three accounting periods up to 31 December 2018 are as follows:

12 months
31 March 2017
£
9 months
31 December 2017
£
12 month
31 December 2018
£
Trading profits / (losses)12,50010,000(50,000)
Income from non-trading loan relationships5,5003,000
Chargeable gains5,000

The computations are as follows:

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial