Answering Tax Adjusted Trading Loss Questions

Question 1

Step 1?

Answer 1

Determine tax adjusted profits and losses after capital allowances

Question 2

Step 2?

Answer 2

Determine when losses arise and therefore when loss relief available

Question 3

Step 3?

Answer 3

Set up pro forma income tax computation for each tax year and inserted loss relief later

Question 4

Step 4?

Answer 4

Set up a loss memo working for each loss to show how it’s utilised

Question 5

Step 5?

Answer 5

If there’s more than one loss, consider them in chronological order

Question 6

Step 6?

Answer 6

Set of losses according to requirements of the question