Company client has large losses accumulated over a few years.
They have changed their sales structure slightly in an attempt to turn things around. They are selling the same end product, but their production procedures are different now.
I am concerned that HMRC might not allow the losses brought forward because they might see it as a "different trade", so can anyone advise what things HMRC look at when considering brought forward losses and same trade situations? Note this isn't a change of ownership situation.
Thanks.
Replies (1)
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Why?
Why are you concerned that HMRC might disallow the losses. You are essentially saying that the company is doing the same thing differently.
I think your question is a non-event that is waiting not to happen. See BIM80535 http://www.hmrc.gov.uk/manuals/bimmanual/BIM80535.htm