KhushalJ
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Ltd Company Losses

Ltd Company Losses

Hi All, 

First time poster, so any help would be much appreciated,

I have a technical issue that I wanted some help on. The scenario is as follows;

 

Company A and Company B are both delivery companies. Company A delivers flowers and Company B delivers general items (not something specific). They are both Ltd companies and are both owned 100% by Miss X.

 

Company A has losses for prior year of £8k and likely not to be trading any more (so no scope for offsetting it's losses against it's future earnings).

 

Company B has profits within it and is likely to have profits in the future.

 

Is there any way Company B can use the losses in Company A through purchasing Company A? I know that via a share purchase of Company A's share capital the losses can't be brought forward and used against another member of the group.

 

But is there a way Company B can purchase the trade and assets and also bring with it the losses? Could the trade of Company B be transferred to Company A, where the losses are, and then be offset against it's future profits?

 

Thanks

 

Khushal

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