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Where Taxpayers and Advisers Meet

Property trading Company changing to Property investment

Joined:Sat Nov 26, 2011 3:39 pm
Property trading Company changing to Property investment

Postby landlord1234 » Wed Dec 30, 2020 12:51 pm


I have run a small Prop Dev Ltd Co. for a number of years as sole director / shareholder.

Buying / Renovating / Selling houses , as trading stock.

It has given me a modest income / profit over time, but I'm considering a change of direction.

At the end of the current year the company has no trading stock, minimal (non cash) fixed assets, no debt, retained profits of around 10k and unused CT losses of about 20k.

The CT losses cannot be carried back and I believe that they would be worthless if I closed the company.

Could I change the SIC code and purchase investment properties with the same Ltd Co. to rent out.

Could I then use the CT losses going forward ?

When I've googled this, the examples I've found are very complicated involving transferring trading stock to investment assets. In my case there would be no stock to transfer.

I have no plans to do so, but would it also be ok to change the company SIC code to trading in some other area of activity, buying and selling widgets or providing a service not related to the property market ?


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