Question No 47:
Which of the following is the correct meaning of “rollover relief”?
A. A trading loss can be carried forward and used to reduce tax in a future profitable year.
B. A capital loss incurred on the disposal of an asset can be carried forward to a future tax year.
C. An entity ceasing to trade, carrying back a trading loss to set off against previous years’ profits.
D. A gain arising from the sale of an asset is deferred provided the entity reinvests the proceeds of the sale in a replacement asset.