Hi Guys ive got an odd situation and would appreciate some common sense advice incase im overthinking it.
We have taken over a client. Prev tax return (2016/17) shows a loss for the year as -12,637 however due to the basis period adjustment the adjusted loss shown is -8132.
Under normal circumstances (where there is a profit) for the 2017/18 tax return the -8132 (had it been a profit) would have been shown as an overlap profit and the -12367 as the taxable profit. But as it is a loss in this example and as we cant show a negative profit i wonder if anyone can advise?
Perhaps its straightforward and on a Friday and 5.45pm im missing the obvious but as the client has taken advantage of the -8132 loss of the -12637 he cant take the advantage of it in both years just like you cant of the profit and hence have the overlap profit