Carrying foward losses

Question from Zoe updated on 5th January 2018:

We have an investment company that is making a profit. We want to purchase another farm company which has carried forward losses. Is it possible that we use the farm company's losses to offset the investment company's profit if we purchase the farm company?

Our expert Mark Withers responded:

No. Company losses can only be carried forward if shareholder continuity of at least 49% is maintained.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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