A Limited UK company has in 2017 a listed shares portfolio worth £100,000 accounted as fixed assets. At the end of the accounting year the fair value (not realised) is £120,000 with a gain of £20,000, so I account realised gain in the income statement of £20,000 which added to the dividend income of £5000 makes total profit of £25000 before tax. I then account for deferred tax (20% ) of £4000. So profit after tax in the income statement is £21000 minus of course CT. The following year 2018 the company sells £10000 worth of shares at cost and the portfolio value goes down to £75,000, I will therefore have an unrealised loss of £15,000 and my deferred tax (20%) will be £3000 (15K x 20% - asset) OR £3000 - £4000 brought forward = £1000?
The deffered tax is calculated on the actual liability of the specific year or can it be accounted in the previous years and then brought forward?