Taxation of the unincorporated business for ATX-UK - part 3: self-test answers

Test your understanding: answers

(1)Statement A is false.
The loss can be offset against the trader’s taxable trading profits of the year of cessation and the three years prior to that year on a last in, first out basis.

Statement B is false.
There is no requirement to account for output tax in respect of assets held on cessation where the VAT due does not exceed £1,000.