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Past trading losses of a company

Can they be set against the chargeable gain on sale of the business?

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A limited company has been trading for 4 years as a franchisee, but not very successfully as it has trading losses carried forward from each year.  It is now in the process of selling the franchise for more than the written down value (the amortisation in the accounts has been claimed as a deduction for tax purposes) and will therefore make a chargeable gain.

Could someone please confirm that the trading losses brought forward (as well as any in the final year of trading) can be set against the company's chargeable gain in the final year?  I believe so, but I am having a moment of doubt!

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By bajones
13th Dec 2017 15:24

Don't think trading losses can. It's total profits for that year or prior year (S37), or future profits of same trade (S45). You're thinking of NTRL deficits (and possibly excess management expenses?)

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By bajones
13th Dec 2017 15:28

Sorry, having re-read, I think you are right. As it's under the new regime then it's not a chargeable gain but a taxable trading credit, so yes!

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By Portia Nina Levin
13th Dec 2017 15:51

What Superman said in his 2nd post.

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