Company has traded for many years. Early years have made large losses, recent years profits being made, utilising the brought forward trade losses.
Current year, the company has bought out a competitor in a different region of the UK under an asset purchase. They therefore now have two operations centres.
Both operation centres are making a profit, but I can't get my head around whether or not I need to restrict the brought forward loss to only offset against the original operation centre profit.
Replies (4)
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Key is is it same trade, yes or no
If it is same trade (merely an expansion in size/location) and there has been no change of control of the company (you do not mention any) then cannot see why b/fwd losses would not be relieved.
It's not on all fours...
... but THIS may help you in the face of any challenge from HMRC.