Taxation of the unincorporated business (for P6 (UK)) - part 1: self-test answers

Test your understanding: answers

(1).  (i) Cease trading on 28 February 2017

2015/16Year ended 30 June 2015
2016/171 July 2015 – 28 February 2017 (the end of the basis period for the penultimate tax year until the date of cessation)


(ii) Cease trading on 31 May 2017

2016/17Year ended 30 June 2016
2017/181 July 2016 – 31 May 2017 (the end of the basis period for the penultimate tax year until the date of cessation)


(2). The trading loss of the final tax year can be offset against the general income and chargeable gains of the final tax year and/or the previous tax year.

The loss of the final 12 months of trading, known as the terminal loss, can be offset against the trading profits (note, not general income) of the final tax year of trading and the three preceding tax years, later years first.

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