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Offset of Non BLAGAB losses

Discussion in 'SA2' started by yogesh167, Feb 25, 2019.

  1. yogesh167

    yogesh167 Member

    "Non-BLAGAB losses can be offset against other profits of the company in the same period in which they are incurred."

    Does other profits here means BLAGAB profits as well?
     
    yogesh167, Feb 25, 2019
    #1
  2. Em Francis

    Em Francis ActEd Tutor Staff Member

    The CR doesn’t really go into this detail, so you won’t be expected to.

    However, A non BLAGAB trade loss can be set against any shareholder profit of the period, with remaining set against shareholder profit of previous 12 months.

    So I suppose this may include the shareholder share of BLAGAB profit (trade profit). However, this may be subject to rules, ie a company may be required to offset against non-BLAGAB profits first.



    Hope this helps



    Thanks

    Em
     

    Attached Files:

    Em Francis, Feb 27, 2019
    #2
  3. Devang Lohia

    Devang Lohia Member

    Hi,

    Chapter 6 Core Reading, page 13 says

    "You cannot use any Non-BLAGAB loss to reduce tax in the BLAGAB fund. Neither can you use BLAGAB XSE to offset BLAGAB trading profits."

    Isn't this contradictory to the above statement?

    And CR also mentions that, if there are Non-BLAGAB trading losses, these are carried forward to future tax years.

    That means it can't be used to offset trading profits within the same tax year/period?
     
    Devang Lohia, Mar 8, 2019
    #3
  4. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi
    Sorry but I cannot see where you are referring to.
    Chapter 6 is about policyholder tax so would not be referring to the above.

     
    Em Francis, Mar 9, 2019
    #4
  5. Devang Lohia

    Devang Lohia Member

    Hi,

    Thanks for your reply!

    My chapter 6 is Life Insurance Company Taxation (1). These are 2017 SA2 notes. Don't know if the course material has changed.

    But the lines that I have quoted in my post are exactly same from the CR. Do you think that there is any contradiction with this thread?
     
    Devang Lohia, Mar 10, 2019
    #5
  6. Devang Lohia

    Devang Lohia Member

    Just ordered for the latest CMP upgrade as well from Acted!
     
    Last edited by a moderator: Mar 10, 2019
    Devang Lohia, Mar 10, 2019
    #6
  7. Em Francis

    Em Francis ActEd Tutor Staff Member

    Hi
    The posts have not contradicted the current Core Reading.
    I would recommend using the latest Core Reading as this is what you will be tested on.
    Thanks
    Em
     
    Em Francis, Mar 11, 2019
    #7

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