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). Paula began trading on 1 June 2023. She has a tax adjusted trading loss for the tax year 2024/25.
What are the alternative reliefs available in respect of this trading loss?
(2). State whether the following statements are true or false in respect of a trader commencing a new unincorporated business.
A Expenditure incurred in the seven years prior to the commencement of trade is treated as having been incurred in the first tax year of trading.
B Capital allowances are given in respect of the cost of assets purchased for use in the business prior to the commencement of trading.
Answers
