SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March.
QUESTION: What is Beatrice's basis period for her first tax year (2023/24)?
ACCA · Question 29 · Income tax and national insurance contributions
SCENARIO: Apex Consulting LLP is a management consulting firm. The partnership prepares accounts to 31 December each year. On 1 July 2023, a new partner, Beatrice, joined the partnership. Her share of the partnership profits for the year ended 31 December 2023 was £48,000. Prior to joining, Beatrice incurred £2,000 of training costs relevant to her new role. The partnership is considering changing its accounting date to 31 March.
QUESTION: If Beatrice had made a trading loss in her first year, against what income could she offset this loss under early trade losses relief?
Answer options:
General income of the current year only
General income of the 3 preceding tax years, on a LIFO basis
General income of the 3 preceding tax years, on a FIFO basis
Future trading profits only
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