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CORPORATION TAX LOSSES

Can I bill or transfer the company's losses to my business that I am running as a sole proprietor? I will soon be billing and suing an ex creditor of the company that caused the losses to happen.

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12th May 2012 17:24

The answer is stil no

Why have you re posted?

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By DMGbus
14th May 2012 13:36

Debt assignment
I presume Ltd Co has ceased to trade, trade transfers to new sole trader.
If the debt were to be assigned to sole trader then sole trader should pay market value to Ltd Co for the debt assigned.
To keep things simple Ltd Co would sue the customer and collect the debt itself as an alternative to assigning the debt.

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debt assignment

DMGbus wrote:
I presume Ltd Co has ceased to trade, trade transfers to new sole trader. If the debt were to be assigned to sole trader then sole trader should pay market value to Ltd Co for the debt assigned. To keep things simple Ltd Co would sue the customer and collect the debt itself as an alternative to assigning the debt.

The limited company ceased to trade at end of August 2011 and I took over the trade as a sole proprietor. The company was dissolved in January 2012.The company's losses were eradicated by 1) the passing of goodwill at pound for pound of annual turnover. 2) The company billed the debtor for unpaid fees,expenses etc. These were then effectively transferred to me at market value as my director's loan account stood at a much greater figure than the goodwill and sales invoice.The debtor as now been served with a statutory demand for part of the debt and if he pays up a civil court case will commence for the rest of the debt.

 

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