Taxation of the unincorporated business for ATX-UK - part 1: self-test answers

Test your understanding: answers

(1). The loss can be offset against general income of 2024/25 (the year of the loss) and/or 2023/24 (the previous year).

Where a claim has been made against general income, a further claim can be made against the chargeable gains of 2024/25 and/or 2023/24.

The loss can be offset against general income of 2021/22, 2022/23 and 2023/24 (the three years prior to the year of the loss on a first in, first out basis).

Any loss remaining will be automatically carried forward against future profits of the same trade.

(2). Statement A is false.
Expenditure incurred in the seven years prior to the commencement of trade is treated as having been incurred on the first day of trading.

Statement B is true.