Illustration - CY/PY
In this lesson, you'll learn how to identify and apply loss relief options when a self-employed trader makes a loss. We work through a practical illustration using Ben, a self-employed gardener, to show you the three main loss relief claims available: offsetting against current year total income, carrying the loss
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In this lesson
- 0:00 Introduction to loss relief claims
- 0:35 Understanding the pro forma structure
- 1:12 Current year offset against total income
- 2:15 Carrying loss back to prior year
- 2:58 Carrying forward loss to future periods
- 3:32 Selecting the optimal loss relief strategy
About this lesson
back to the prior year, or carrying it forward against future trade profits. You'll see how to set up a clear pro forma and loss memo to track your work, understand the tax and cash flow implications of each option, and recognise why prior year relief is often the best choice. This is essential knowledge for the Taxation paper, where loss relief questions appear regularly in both objective tests and case studies.
Duration: 4m
Transcript
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