I was hoping that someone could help me as I'm failing to see the solution in my futile attempts to gather my witts before this dreadful exam.
Q45 in Bpps revision kit - the solution quotes that Capital losses and chargeable gains are computed together, that is in the 3 month period accounting period. I am really baffled by this as the study text page 289, section 8 states that all chargeable gains and losses should be recognised in the period in which they are realised. The capital loss occurred as a result of investment?is that a clue?
Hi. Since there is no chargeable gains in the first 12 months, we carry the loss forward where it will be offset. So in the three month period the chargeable gain will be 39,000 - 4259 = 34750.
Does it make sense ?