Test your understanding
These questions are intended to get you thinking about some of the various tax issues that you need to be aware of in respect of the taxation of an unincorporated entity. They may highlight some areas of your basic tax knowledge that need to be worked on.
(1). Zhou began trading on 1 June 2021. Accounts will be prepared to either:
(i) 31 December, or
(ii) 30 April.
What are the basis periods for the first three tax years and what is the overlap period in respect of each of the two alternative year ends?
(2). Paula began trading on 1 June 2020. She has a tax adjusted trading loss for the tax year 2020/21.
What are the alternative reliefs available in respect of this trading loss?
Answers
