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
