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

Test your understanding: answers

(1).  (i) Cease trading on 28 February 2021

2019/20Year ended 30 June 2019
2020/211 July 2019 – 28 February 2021 (from the end of the basis period for the penultimate tax year until the date of cessation)


(ii) Cease trading on 31 May 2021

2020/21Year ended 30 June 2020
2021/221 July 2020 – 31 May 2021 (from 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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