In this case, the answer is no
Oh they can afford it alright, but getting them to pay for it is another question entirely
What is not quite right about what I said? I can't see anything in legislation or commentary to suggest it is incorrect but would be grateful if you could point me in right direction
Additionally, even if you could do so, capital losses can only be offset against capital gains.
Furthermore, the general rule is that where a capital loss arises on a transaction between connected persons, the loss can only carried forward and utilised against future capital gains arising on transactions with the same connected person.
EDIT: you're correct that accounting adjustments re the revaluation of a property are ignored where that property is considered to be held as an investment for tax purposes
S171 TCGA 1992 (ie the NGNL rule) is automatic where the conditions are met. No choice.
Thanks for the reply all.
One further thought, due to a significant CA claim a few years back there are some NRL property business losses. Not hugely significant but could be valuable. But got me thinking, if they were significant, there is no way we could get the benefit of these losses by bringing into the UK tax net?
ie under Option A - I can't see how the income tax losses can be used against the new corporation tax profits following migration to the UK and so would be lost
under Option B - the losses would sit within the NRL when property is transferred out, so as Nonresi Co's UK property business is ceasing these losses will be extinguished - unless Nonresi Co was going to invest again in the short-medium term future as an NRL, which won't be the case as this would defeat the whole purpose of the transaction
Many thanks for the reply, much appreciated. I think your third paragraph is the most relevant here. The goods are delivered to A's address in UK, transported to Ireland by A where they are used on site.
Despite the pretentious tone, I appreciate your comment.
thanks for the informative answer nina. the corporation tax saving I would assume is the reason