Losses in a Ltd company

Tracy_Rutherford

Can losses be set off? ltd company was trading (made a loss) then became dormant and has now started to trade again?

Thanks

Tracy XX

Jmann

Can you provide further information.

Such as the same trader or different trade?

Tracy_Rutherford

Same trade.

Thanks

Tracy

deanshepherd

No. If the company ceased trading then the losses died with the trade.

How long was the company dormant for? Did it resurrect with exactly the same trade?

Tracy_Rutherford

Hi Dean,
The company has been dormant for 1 year. My client wants to start it up again and make use of its losses by opening another ltd company and getting the old company to bill the new company.

Im just fininshing the dormant accounts Im just taking the figures from the old balance sheet 2008 and carrying them forward to 2009. I take that is what I have to do?

Tracy

deanshepherd

If it had been a very short period of time then you could possibly have argued that the trade never in fact ceased, but not for a year.

Those losses are gone I'm afraid.

Tracy_Rutherford

Thanks Dean.

Tracy

Hasan.Ahmet

Losses in a Ltd company

In the past I came across to companies with losses being offered for sale so as to avoid waste of losses.
I don't have the specifics to detail how and in what circumstances the purchasers may be able to utilise the losses to obtain relief but it may be of interest for the readership to look into.

deanshepherd

'mcinocot'

Tracy_Rutherford

Thanks again Dean you have all the answers!



Im training to be ATT qualified fingers crossed for the exams in May!