Question
A sole trader has the following tax adjusted results for the following 3 tax years. He continued in the same trade through-out: 2018/19 2019/20 2020/21
A sole trader has the following tax adjusted results for the following 3 tax years. He continued in the same trade through-out:
2018/19 2019/20 2020/21
Trading Profits £152,000 £0 £141,000
Other income £112,000 £115,000 £117,000
The sole trader made a trading
loss in 2019/20 of £143,000
1. What is the maximum amount of trading loss that could be set against the individuals’ income for 2020/21? At what level can it be offset? (Show all calculations and annotate fully)
2. What is the maximum amount of loss that could be relieved in 2018/19 and what can it be relieved against? (Show all calculations and annotate fully)
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