CIMA F1 Syllabus C. Fundamentals Of Business Taxation - Trading Losses Treatment - Notes 3 / 4
These reduce your taxable profit in future years, or even in previous years!
| 2010 | 50 | |
|---|---|---|
| 2011 | (100) | |
| 2012 | 45 | |
| 2013 | 30 |
Answer
2010 - no taxable profit - as the 50 of the 100 2011 loss is carried back - leaving 50 losses to be carried forward
2011 - no taxable profit - they made a loss!
2012 - no taxable profit - as 45 of the remaining 50 losses will be set against the profit
2013 - 25 taxable profit - this is the 30 profits less the final 5 tax losses left