Moving a FHL to a Limited Company

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Hi everyone

My clients (3 people) jointly own a Furnished Holiday Let. They want to move the FHL to a Ltd company. However there is loss carried forward in the FHL accounts. Can someone pleaase advise what will happen to this loss carried forward if they do want to go ahead with the LTD option. 

Thanks

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paddle steamer
By DJKL
03rd Jan 2024 15:09
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By ireallyshouldknowthisbut
03rd Jan 2024 16:19

Why? Would be my first question. Seems like tax suicide if its loss making.

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Replying to ireallyshouldknowthisbut:
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By FactChecker
03rd Jan 2024 18:20

Could be the 'trade' is a sham (no plan or intention of ever reporting a profit) ... in which case any 'clever idea' that is planned for capital growth may need to be put under the microscope?

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By FrankTax
04th Jan 2024 08:49

Depending on treatment, there may be a balancing charge on the sale of "plant" within the FHL which would tidy up the loss.

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