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Where Taxpayers and Advisers Meet

Offsetting trading losses against new asset purchase

3point14
Posts:44
Joined:Sun May 16, 2010 11:53 pm
Offsetting trading losses against new asset purchase

Postby 3point14 » Thu Nov 23, 2017 12:30 am

Owner is 100% shareholder of Company A.

Company A has accumulated losses of £0.5m.

Owner is buying asset purchase of Company B which makes £150k per annum.

Owner would like to show profits of asset purchase for 1 or 2 years then combine with Company A and utilise losses accumulated against future profits.

Question is how to achieve objective with best results. Assumption is to set up Company C to hold assets purchased from Company B.

Real life scenario, conflicting advice received re ability to offset historic losses of merged entity. Thanks.

bd6759
Posts:4262
Joined:Sat Feb 01, 2014 3:26 pm

Re: Offsetting trading losses against new asset purchase

Postby bd6759 » Thu Nov 23, 2017 7:10 pm

Profits of the same trade?


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