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Summary of all related loses calculation in company and indviduals

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Summary of all related loses calculation in company and indviduals

I will need a summary of how to account for losses for start of business and cessation of business for individual and company. And how to deal with capital loss and property loss for individual and company. A summary in two pages maximum.

November 5th 2015 AN ACCA USER 170 Points

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COMMENCEMENT
NOTE; ONE
Loss incurred in Four Years can be
Set off against Total Income of previous
Three Years on a First in First out (FIFO) basis
NOTE; TWO
Maximum deduction from total income, £ 50,000 and this applies to:
• Current Year total income
• Earlier years when set off against non-Trading income
• No restriction when set off against Net Chargeable Gains
NOTE THREE
After making a Total income claim, loss
Can be set off against Net Chargeable Gains in the same year

Finally any unused loss can always be carried forward for Set off against First
Available trading profit only
CESSATION
Loss of Last 12 months of trading can be set off against trading income of previous 3 years on LAST IN FIRST OUT BASIS

November 6th 2015 AN ACCA USER 140 Points
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