Test your understanding
(1). State whether the following statements are true or false in respect of the cessation of a business on 31 August 2024.
A Any terminal loss can be offset against the trader’s total income of the year of cessation and the three years prior to that year on a last in, first out basis.
B The de minimis rule for output VAT on the cessation of a trade states that there is no requirement to account for output tax in respect of assets held on cessation where the value of such assets does not exceed £1,000.
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