Trading losses are they after Annual Investment Allowance?

Posted by John Cotter PM | on Tue, 31/01/2012 - 15:50 1235 4 comments | report

Can anyone confirm using the figures below, what is the trading loss that can either be carried forward or set off against earlier years income:

Profit per accounts £3,800

Less AIA (capital expenditure) £5,300

Net business loss for tax purposes £1500

Is the trading loss £1,500 or is it actually a profit of £3,800?

If it is a loss of £1500, I want to offset this against prior years tax paid under PAYE, if I can. This is the first year of trade.

Frustrated as I cannot see an clarity on HMRC's site to this rather basic point!

Sorry if I am being stupid.

Comments

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Kent accountant | Tue, 31/01/2012 - 16:22

Paul Scholes | Tue, 31/01/2012 - 16:58

Kent accountant | Tue, 31/01/2012 - 17:09

John Cotter | Tue, 31/01/2012 - 17:59