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Can company losses be offset against new trade?

Can company losses be offset against new trade?

Limited company set up for consultancy work, this dries up and a few thousand pound of losses c/f from director drawing a salary.  Year or so later company takes to delivering vehicles for a fee.  Now can the losses c/f be set against the profits from the delivery trade?  There has been no change in ownership.  

S48 (4) (a) states '(so long as the company continues to carry on the trade)' which would suggest not as the trade of consultancy has stopped.

Any help much appreciated.  

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10th Nov 2017 17:19

If these are losses from before 1 April 2017, they are only available to set against profits of the same trade.

Losses arising after 1 April 2017 can be set against total profits, not just specifically those of the same trade.

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By DJKL
to gilderda
10th Nov 2017 17:41

Has Finance (No 2) Bill 2017 got assent yet?

https://services.parliament.uk/bills/2017-19/finance.html

https://publications.parliament.uk/pa/bills/cbill/2016-2017/0156/17156.pdf

If not then whilst I 99% expect it to so do there is 1% of me that has this nagging doubt that the government could fold before it gets it over the line; it all got dumped from the first attempt.

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By Branski
10th Nov 2017 17:28

They are pre 1/4/17 losses so looks as though they cannot be offset, thanks.

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