A sole trader has the following tax adjusted results for the following 3 tax years. He continued in the same trade through-out:

                              2018/19            2019/20    2020/21

Trading Profits   £152,000            £0            £141,000

Other income    £112,000       £115,000      £117,000

The sole trader made a trading 

loss in 2019/20 of                     £143,000

1. What is the maximum amount of trading loss that could be set against the individuals’ income for 2020/21? At what level can it be offset? (Show all calculations and annotate fully)

2. What is the maximum amount of loss that could be relieved in 2018/19 and what can it be relieved against? (Show all calculations and annotate fully)

Answer rating: 100% (QA)

1 141000 2 143000 Explanation 1 When losses are carried forw... View the full answer