Ivy begins trading as a farmer on 1 January 2018, making up annual accounts to 31 December Her adjusted trading profits (losses) in the opening years are as follows (a) Compute Ivy 's trading income for the first four tax years, assuming that no averaging claims are made (b) Compute Ivy 's revised ...

To compute Ivys trading income for the first four tax years for both scenarios described we need to understand the tax rules that apply to the calcula ...

Ivy begins trading as a farmer on 1 January 2018, making up annual accounts to 31 December.

Question:

Ivy begins trading as a farmer on 1 January 2018, making up annual accounts to 31 December. Her adjusted trading profits/(losses) in the opening years are as follows:

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(a) Compute Ivy's trading income for the first four tax years, assuming that no averaging claims are made.

(b) Compute Ivy's revised trading income for the first four tax years, assuming that all possible averaging claims are made.

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Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

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Question Posted: Feb 10, 2024 01:01 AM

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Ivy begins trading as a farmer on 1 January 2018, making up annual accounts to 31 December.

Question:

year to 31 December 2018 year to 31 December 2019 year to 31 December 2020 31,600 15,400 (12,900)

Step by Step Answer:

To compute Ivys trading income for the first four tax years for both scenarios described we need to understand the tax rules that apply to the calcula...View the full answer

Taxation Finance Act 2020

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