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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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A limited company has trading losses for the current year

Resolved Question:

A limited company has trading losses for the current year of £25000 plus trading losses brought forward of £150000 and capital losses brought forward of £12000. In the current year the company has a chargeable gain of £207,000 after indexation.What,if any, of the losses can be used against the chargeable gain.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

The £25,000 trading loss can be offset against the £207,000 capital gain made in the same accounting period (4.1 here). Also, look at the second paragraph here and Section 37 Corporation Tax Act 2010 here. The £12,000 capital losses brought forward can be offset against the £207,000 capital gain made in the current year (4.3 here). Also, look here.

I hope this helps but let me know if you have any further questions.
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