BTX - Trading Losses

mrderek88

Can someone please explain to me the attached question (BTX 1.4 FA 2013)


State how the loss for the year ended 31st August 2012 will be relieved, assuming earliest possible relief.














Year Ended 31/08/12
Year Ended 31/08/13








Trading profit / (loss)
15,470
-19,020








Rental income
3,120
2,685








Total profits
18,590
0








Less offset
16,335
2,685








Total taxable profits
2,255
0









I have to answer offset for both years along with TTP's for both too.

Really struggling with BTX and exam on Thursday. Help please!?

Thanks

tillyjbc

Hi, you writing as much of the loss off as possible in the current year (against the rental income), then the remainder you are carrying back to offset against TTP of previous year.

Hope that helps, good luck with your exam!