Losses in a Ltd company
Tracy_Rutherford
Registered Posts: 19 New contributor 🐸
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
Thanks
Tracy XX
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Comments
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Can you provide further information.
Such as the same trader or different trade?0 -
Same trade.
Thanks
Tracy
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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?0 -
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 0 -
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.0 -
Thanks Dean.
Tracy 0 -
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.0 -
'mcinocot'0
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Thanks again Dean you have all the answers!
Im training to be ATT qualified fingers crossed for the exams in May! 0
