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2 trades for CT600

2 trades for CT600

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I have a client that used to run his trading business through his limited company.  This trade reduced to nothing and he started farming under the same company.  This farming has built up large losses but he has now again started the original trade within the same acconts.  My colleague has put both trades through the accounts but has correctly split them out on the tax computation.  My problem is the CT600.  The losses cannot, of course be set against the small trading profit which will have a tax liability.   How to split them out and show them on the CT600?  Anyone have any experience of this?

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By WillowTree
26th Aug 2015 10:25

CT600

I have been looking throughthe CT600 guidance and the only place I can see to put this additional trading income is in box 14.  It is entitled Annual profits and Gains Not Falling Under Any Other Heading, which is not strictly correct but it is the only place I can see to put this separate profit that needs to have tax alcualted and paid on it.  Anyone know if this is the way to go/what HMRC may make of it?

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By Paul Soper
26th Aug 2015 11:20

The return is bigger than you think...

A CT return is like the Tardis - it is bigger than it looks because it includes not only the actual return document but the accounts and computations that you send with it.  So provide different computations for the different activities, offset where permitted within the computations, carry forward where it is not and then put the resultant figures into the return which will then determine the liability.  You don't have to shoehorn the two together with contradictory figures arising - just use the net figures after any relevant set offs have been made.

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By cparker87
26th Aug 2015 11:39

terminal loss relief
Might be worth terminating the company. Not sure if there is a restriction on trade under TLR. Take ab look.

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