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Maintaining the benefit of previous losses against future business profits
My client is a partnership that has traded successfully in the building industry for many years. The partners know Mr X who has been in the same line of work trading through X Ltd and who wishes to retire soon.
I understand that X Ltd has unrelieved and brought-forward losses for the past two or three years. I believe that this is largely because nearing retirement Mr X was not putting as much energy into finding new work as he used to while running costs remained at the same level.
My clients believe that considerable goodwill remains in the company and are willing to pay for this. What is the best way of ensuring that the loss relief remains available against X Ltd’s (or preferably their own) future profits?
Would it help if Mr X were retained in some capacity in the new business?
Query 18 467...
