Page 48 - F1 Integrated Workbook STUDENT 2018

Chapter 2

1.2 Trading losses

When an entity makes a trading loss the assessment for that tax year will be nil.

The entity must now claim loss relief based on the rules of the country's tax regime.
The assessment will tell you the rules of the country in the question.

Trading Loss = Nil charge
for current year tax charge

Loss relief

Carry losses Carry losses Offset Offset
forwards backwards losses losses
against against against against
future profits group
of the SAME previous company capital gains
periods in the same
trade profits period

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