Question asked:

0
0

Hi Alan, can Company A, a 100% subsidiary surrender its trading losses on a value basis to Company B, another 100% subsidiary with only rental income? It seems so under s.420B from my reading of it. For clarity, the majority of the costs of company A are salaries, and it has already charged a management charge to company B for managing the properties which has been deducted from rental income. We have filed the CT returns for both companies without yet claiming group relief for 2018. Thanks, Ben

Marked as spam
Posted by (Questions: 7, Answers: 3)
Asked on 16 October 2019 10:03 am
10 views
0
Private answer
The trading company must first set the loss against it’s own income. It must be set back against trading profits of the preceding year and then against its other income on a value basis (I’m assuming it has none). Then you can claim s420B on a value basis.
Marked as spam
Posted by (Questions: 16, Answers: 709)
Answered on 17 October 2019 9:33 pm