Bulgaria Ltd, a company making snack foods, had the following results for the two years to 31 March 2013:
31.3.2012
31.3.2013
£
Trade profits
1,000
2,000
Property rented out - profit/(loss)
(30,000)
10,000
Chargeable gains
4,000
7,000
How much of the loss may be relieved in the two years to 31 March 2013?
The correct answer is: £24,000.
The loss is first set off against total profits for the current period and then carried forward as a loss of the following accounting period.
Note that these rules differ from those for individuals with property business losses.
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