CT - Carryback of losses

CT - Carryback of losses

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Hi guys, hoping for sme advice if possible!

We have a limited company that has been trading for approx. 3 years. The company's most recent year ended is 31st Dec 10. The company commenced a new trade in the year ended 31st Dec 10 which has made a substantial loss and the company has not carried on the same trade since 31st Dec 10. Is there any way we can offset this against profits of previous years (terminal loss relief states that you can only carry losses back against the same trade). Any suggestions greatly appreciated! 

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By User deleted
18th Sep 2011 21:24

No

You can carry back trade losses, terminal or otherwise, only to periods when that same trade was being carried on.

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By thisistibi
19th Sep 2011 07:46

Same trade

When you say that they aren't the same trade, how similar are they?  Maybe it's worth double checking that point.

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By cparker87
23rd Sep 2011 00:06

.

Agreed with thisistibi - definitely worth a further check - there's some interesting arguments for 'same trade'.

Unlikely given the language of your question; but is there any possibility of Group Relief?

My only other suggestion would be for the shareholders (depending how much they subscribed for equity) (assuming individuals) to consider a negligible value claim against the value of the shares, now worthless, for offset against general income under ITA07 s131.

If corporate shareholders exist maybe attempt to find a way around Substantial Shareholding Exemption and then to a neg value claim (again if much capital subscribed for equity). If a group also intra-group offset opportunities.

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