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WorksheetsTax Losses Week 3 Task 2
Total questions: 7
Worksheet time: 14mins
Which of the following trade loss options (post 1 April 2017) are available for a company?
A Claim against CY and/or previous 12 months total income in either order.
B Automatic carry-forward against future total profits.
C Claim against CY total income only.
D Claim against previous 12 months total income only.
A, B, C & D
C & D
B & C
A & B
State three factors that might affect a company’s decision on whether to make a CY or CB loss claim v carry forward relief?
What could a company do with a capital loss?
A Automatically set-off against CY gains then carry-forward against first future gains.
B Set-off against total CY income.
C Carry back 12m against other gains.
D Carry back 12m against total income.
A
B
C
D
Pear plc has the following results:
Y/e 30.9.18: Trade £50K, Property £20K; Investment £2K
6m/e 31.3.19: Trade £35K; Property £25K; Investment £2K
Y/e 31.3.20: Trade loss (£190K); Property £25K, Investment £2K
£29000
£65000
£101000
£163000
Lime Ltd has TTP of £30,000, after deducting £3,000 of QCDS, for the year ended 30 September 2019.
For the year ended 30 September 2020, Lime Ltd made a trade loss of £45,000. The only other taxable source of income was a chargeable gain of £5,000.
What is the maximum loss the company can claim against the y/e 30 September 2020?
Peach plc has the following results:
Y/e 31.3.18: Trade £50K ; Capital gains £10K
Y/e 31.3.19: Trade £50K; Capital loss (£7K)
Y/e 31.3.20: Trade £50K; Capital gains £5K
What is:
(i) The amount shown on the gains line for each year?
(ii) The capital loss carried forward, if any, at 1.4.20?
Mango Plc estimates it will have Taxable Total Profits of £500,000 for the year ended 30th June 2022 and wants to calculate what the CT liability would be if CT rates increased to 21% from FY 2021.
Calculate the estimated Corporation Tax Due by filling in the question marks below:
FY 2020: ? months/12 months x £500,000 x ?% = £?
FY 2021: ? months/12 months x £500,000 x ?% = £?
(a)
