Page 53 - F6 Slide - Taxation - Lecture Day 2 Class

Assessed Losses

• An assessed loss arises when your income is greater than the

allowable deductions.

• Balance of assessed losses is basically the losses that are

brought forward or carried forward.

• Assessed losses and balance of assessed losses are allowable
deductions.

• An individual is allowed to deduct the losses from one trade to

the other trade provided the losses are not ring fenced.

• An individual may carry forward assessed losses even without

trading in the previous year.(Meaning an individual can carry

forward an assessed loss of 1 to 3 even if there was no trading

in year 2)

• A company can only carry forward an assessed loss if they was

trade in the year.

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