Unusual Urns Limited is a UK resident company. It has no associated companies.

Recent results are as follows:

Year to 6 months to 30 September 2008 31 March 2009

£ £

Trading profit/(loss) 210,000 (150,000)

Gift Aid donations 1,500 750 The company's chargeable profits for the year to 31 March 2010 are expected to be approximately £700,000, derived mostly from trading income. The company receives no dividends.

You are required:

(a) to state the alternative methods by which the company can obtain relief for the loss of £150,000 sustained in the period to 31 March 2009, and

(b) to state, with your reasons, which of these alternatives you would choose so as to obtain the maximum tax advantage when claiming relief in respect of the £150,000 loss. You should also state the effect that your proposed treatment will have on the charges on income paid by the company.