Company Trade Losses Brought Forward

Company Trade Losses Brought Forward

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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.

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By gboy1980
11th Mar 2015 08:59

Does anyone have any advice on this?

Many thanks

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RLI
By lionofludesch
11th Mar 2015 09:15

Same Trade

For me, it's the same trade, albeit expanded.

No problem.  Claim away.

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paddle steamer
By DJKL
11th Mar 2015 09:33

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.

 

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By Steve Kesby
11th Mar 2015 10:04

It's not on all fours...

... but THIS may help you in the face of any challenge from HMRC.

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