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Thursday, 27 October 2011

CVA and Corporation Issues

Many people worry that if they go into a CVA then they may not be able to carry over tax losses.  This is especially the case if the company is "hived down".  Please see an extract from Keith Rushen of Robinson Rushen's Guide to CVAs and Corporation Tax Issues which highlights the situation in relation to "hive downs".  A copy of which can be downloaded from our new page on CVAs and Corporation Tax
Provided the beneficial ownership of the trade is held as to 75% or more by the same persons within two years after the transfer as before the transfer, the trade is not treated as permanently discontinued nor a new one set up. Trading losses and capital allowances, but not capital losses or non trade losses, may be carried across from the transferor company to the transferee and used against future profits from the trade transferred.

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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