C3) Bella has traded for many years, in the last two years her trading and property profit/(losses) were: Property Trading Year ended 31 December 2020 Year ended 31 December 2019 30,000 (190,000) 70,000 45,000 Bella wishes to claim relief as early as possible. Required: Using a loss memorandum (memo) and showing workings for how you have considered relevant caps on relief, explain how Bella can utilise the £190,000 trading loss and how much loss will be carried forward to tax year 2021/22.
C3) Bella has traded for many years, in the last two years her trading and property profit/(losses) were: Property Trading Year ended 31 December 2020 Year ended 31 December 2019 30,000 (190,000) 70,000 45,000 Bella wishes to claim relief as early as possible. Required: Using a loss memorandum (memo) and showing workings for how you have considered relevant caps on relief, explain how Bella can utilise the £190,000 trading loss and how much loss will be carried forward to tax year 2021/22.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![C3) Bella has traded for many years, in the last two years her trading and property
profit/(losses) were:
Property Trading
Year ended 31 December 2020
Year ended 31 December 2019
30,000 (190,000)
70,000
45,000
Bella wishes to claim relief as early as possible.
Required: Using a loss memorandum (memo) and showing workings for how you have
considered relevant caps on relief, explain how Bella can utilise the £190,000 trading
loss and how much loss will be carried forward to tax year 2021/22.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff6e738e2-a7c4-4aa1-b559-a7e1c55aff02%2Fc645f299-7db1-4e6f-9c96-3464e8d43024%2Fvlt4gbm_processed.jpeg&w=3840&q=75)
Transcribed Image Text:C3) Bella has traded for many years, in the last two years her trading and property
profit/(losses) were:
Property Trading
Year ended 31 December 2020
Year ended 31 December 2019
30,000 (190,000)
70,000
45,000
Bella wishes to claim relief as early as possible.
Required: Using a loss memorandum (memo) and showing workings for how you have
considered relevant caps on relief, explain how Bella can utilise the £190,000 trading
loss and how much loss will be carried forward to tax year 2021/22.
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