Can you carry back losses which were brought forward?
Farming client made a loss in 2009/10. Losses could not be utilised so were carried forward to 2010/11. No tax due for 09/10.
Profit made in 2010/11 and averaged with 2009/10, resulting in a tax liability for 09/10 but no tax for 10/11 due to losses brought forward. However if we could carry back the losses which had been brought forward we could eliminate the 09/10 tax and still have enough losses left over in 10/11 for there to be no tax due.
The averaging claim does not save any tax as there is no tax for either year whether we average or not, but by averaging we give ourselves a lower profit figure should we need to average again in 2011/12.
The question is, are we allowed to carry back losses which had been brought forward purely by claiming on the 2010/11 Tax Return or would we need to amend and re-submit the 2009/10 Tax Return too?
- flat rate scheme 2,344 50
- Restriction of trading loss and overlap relief 147 2
- CIC Abbreviated Accounts 151 5
- Problems viewing AWeb posts 109 4
- Family Partnership 250 7
- Rollover relief - No new asset purchased 316 5
- Can I prepare dormant accounts? 129 2
- How do you integrate prepaid expenses in to the cash conversion cycle? 60 2
- Does anyone have an old version of Sage for sale? 183 4
- Signed accounts for bank 642 14
- What route into accountancy would you recommend? 836 12
- Business lending another business money (UK) 292 7
- Deferring dividends on paper 173 5
- VAT Query on new build 109 1
- How to format Co-operative Accounts 98 1
- P11D Car Value 263 6
- NOVA declaration 107 1
- Business valuation advice 709 18
- Auto enrolment: What’s your plan? 1,512 16
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,227 23