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Company trading losses carry forward where change of ownership

Company trading losses carry forward where...

If the majority shareholders of a company decide to sell all of their shares to a single buyer, then is the new owner unable to utilise any unused trading losses brought forward from previous years?

Thanks for any help


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14th Mar 2012 08:30


The change in ownership of a company does not by itself stop the losses continuing to be carried forward and can be used as before.  That's because a company has it's own legal personality which continues to exist regardless of any change in the shareholders.

However, be careful of anti-avoidance legislation.  If the is a major change in the nature or conduct of the trade within 3 years of a change in ownership, then the losses could be extinguished (see HMRC manuals CTM06370 together with the pages before and after it)... you will normally want a 3 "standstill period" before making significant changes to the business if you wish to retain those losses.

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By balajo
14th Mar 2012 15:39

Corp accounts filing due Need some help please.

Actually I should make this a separate post.


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