Company A is owned by Mr X and traded as an electrical contractor. It has been dormant for three years and has trading losses of £50k carried forward. Mr X's son also has an electrical contracting company.
The son is wondering if he could be transferred the shares in company A from his father to allow him to utilise the £50k trading losses as both companies are within the same trade? Is the main issue here around the length of time Company A has been dormant which would stop the losses being able to be offset?