Company use of pre-trading losses

Can a company utilise pre-trading capital allowances against rental profits arising in the company

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The Company has a number of rental properties which has generated a considerable amount of profit.  Also, in the company is a residential care home which is in the process of being developed but has not yet opened.  Can the value of the annual investment allowance that has accumulated so far for the development be offset against the rental income now or does the care home have to be trading before the capital allowance claim can be made?

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By Cheshire
15th Dec 2020 11:58

Quote:

Company use of pre-trading losses
Can a company utilise pre-trading capital allowances against rental profits arising in the company
The Company has a number of rental properties which has generated a considerable amount of profit.  Also, in the company is a residential care home which is in the process of being developed but has not yet opened.  Can the value of the annual investment allowance that has accumulated so far for the development be offset against the rental income now or does the care home have to be trading before the capital allowance claim can be made?

Anon.

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