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Loss Relief on Cessation of Company

Company's trading loss for 3 month period on cessation is £39,702 while its Profit for the 12month period immediately before this 3 month cessation period was £48,173 and the year before was £6,367. How much Loss on cessation can be relieved?


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By occca
04th May 2012 15:58

Calculate as normal

Calculate taxable loss as normal and carry back to utilise

Why do you think it is not all allowable?

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By Khwaja
10th May 2012 14:39

Thanks OCCCA

Thanks. I was confused with 12 months loss rule...............that 3 month loss would be netted against the previous 9 months profits and if any net loss is left that would be relieved under cessation rules. But I think that is not the case and the full loss of 3 months would be relieved under Cessation rule. Is that correct?

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