Charles Pascoe explains how to obtain the maximum value from accumulated trading losses in an insolvent company
The objective of this article is to provide a practitioner’s overview of the key practical tax issues of trading loss preservation that invariably arises in the office when dealing with corporate insolvency matters. The very nature of this matter will involve maximising the quantum of trading losses for tax purposes and how the greatest value can be obtained for them.
Is the company still trading?
This is the most crucial factor. Unused trading losses can be carried forward for offset against the first available taxable profits of the same trade (CTA 2010 s 45). It follows therefore that if the trading activity ceases any losses are effectively lost.
Usually it is relatively straightforward to ascertain if a company is no longer trading. Not so long ago I joined...
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Charles Pascoe explains how to obtain the maximum value from accumulated trading losses in an insolvent company
The objective of this article is to provide a practitioner’s overview of the key practical tax issues of trading loss preservation that invariably arises in the office when dealing with corporate insolvency matters. The very nature of this matter will involve maximising the quantum of trading losses for tax purposes and how the greatest value can be obtained for them.
Is the company still trading?
This is the most crucial factor. Unused trading losses can be carried forward for offset against the first available taxable profits of the same trade (CTA 2010 s 45). It follows therefore that if the trading activity ceases any losses are effectively lost.
Usually it is relatively straightforward to ascertain if a company is no longer trading. Not so long ago I joined...
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:
