I have a set of accounts prepared by my accountant for two companies (A & B for sake of discussion) within which I am both director and only shareholder. He has proposed to take advantage of some losses in company B, to reduce the tax exposure in company A, by using an intercompany charge / loan. However, for the year in question, there was no actual transfer of funds between the two companies. Is this is an appropriate / legal way to proceed?
I'd appreciate just a brief top-level explanation, confirmation whether this is appropriate or not.