Page 41 - F6 Slide - Taxation - Lecture Day 2

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.

41