Can a company cease to trade but still exist but claim cessation loss relief.
Yes, of course.
It's ceased trading. How would it get the repayment if it had to be wound up before the loss could be claimed ?
Not that I'm wanting to put ideas into HMRC's head, like .....
Thanks good point, I hadn't asked a clear question , multitasking doesn't seem to work for me. To expand the point a bit, the trade has ceased but there is a bank loan in the company being settled by the director whose given a P G so cant liquidate. I'd like to be able to take the losses back 3 years to recover past tax but the company will need to exist for a few years whilst the director repays the loan.
Terminal loss relief relates only to the trading activity of the company. It could cease to trade, claim TLR, and continue to carry on, for example, investment property activity.
Can he not negotiate with the lender to transfer (novate) the loan to himself and at least save himself the cost of annual accounts? The lender would be no more exposed to default than it currently is.
Thanks, I tried that and he says that they refused to remove the company from the loan obligation.