Helen Cox and Kassim Meghjee (Mishcon de Reya) consider the case’s progress through the courts and the practical impact of the Court of Appeal decision.
For companies that acquire a loss-making trade or reorganise their group to combine trades within one company the right to preserve and utilise the accumulated losses of a transferred trade is an essential part of the UK loss relief rules. This right is subject to the limitation set out in CTA 2010 s 944(3) (previously ICTA 1988 s 343(3)) which states that the company that begins to carry on the trade (the ‘successor’) can only claim relief for a loss:
which was made by the company which ceased to carry on the trade (the ‘predecessor’) in that trade; and
for which relief would have been given to the predecessor had it continued to carry on that trade.
The...
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Helen Cox and Kassim Meghjee (Mishcon de Reya) consider the case’s progress through the courts and the practical impact of the Court of Appeal decision.
For companies that acquire a loss-making trade or reorganise their group to combine trades within one company the right to preserve and utilise the accumulated losses of a transferred trade is an essential part of the UK loss relief rules. This right is subject to the limitation set out in CTA 2010 s 944(3) (previously ICTA 1988 s 343(3)) which states that the company that begins to carry on the trade (the ‘successor’) can only claim relief for a loss:
which was made by the company which ceased to carry on the trade (the ‘predecessor’) in that trade; and
for which relief would have been given to the predecessor had it continued to carry on that trade.
The...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")