Hi everyone. Just wondering if someone could give me a little help, please. I am stuck on a question I've come across in my Business Tax studies, and I'm unsure at which point to calculate the Corporation Tax. The info is as follows:
Profit and loss account
|Retained profit ( loss ) at 01 November 2014||(30,665)||2,409|
|Profit ( loss ) for the year||70,410||(33,074)|
|Retained profit ( loss ) at 31 October 2015||22,968||(30,665)
At which point do I calculate the CT for year ending 31 Oct 15? Do I deduct the loss from the previous year and then calculate the CT due i.e. 70,410 - 30,665? Or is it calculated on the full £70,410? If the latter, where does the loss get incorporated as relief?
Many thanks for your help.