Page 425 - F1 Integrated Workbook STUDENT 2018

Answers

Exxampple 100

In ccountry X, capital losses can bee set off aggainst capital gains inn the samee
tax year, but uunrelieved capital lossses cannoot be carrieed back.

Unrrelieved caapital lossees may be carried forrward and set againsst capital gaains
in future years.

Halll and Co hhad the following cappital gains aand lossess in year 1 to 4.
Yeaar Capitall
gain/(losss)
1 3,000
2 (4,000))
3 2,500
4 3,000
Whhat are Halll and Co’ss taxable gains in eeach year??

Sollution

Yeaar Tradding Workinggs
gain/((loss)
1 3.0000
2 – –
3 – – 2,500 – 22,500
4 1,5500 3,000 – 1,500 (balance of the loss)

Thee capital looss can't bee carried bback againsst year 1, oonly carriedd forward
agaainst the firrst availablle capital ggain. Theree is no limitt to how many years it
cann be carriedd forward ffor.

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