Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Single surviving trade

16 March 2015
Issue: 4493 / Categories: Tax cases , Companies

Leekes Ltd (TC4298)

The taxpayer company ran out-of-town department stores. In November 2009 it bought the share capital of Coles a chain of furniture shops and warehousing facilities which had losses of £950 321 for 2009/10 as well as carried forward losses of £2.26m. Its business was hived up to the taxpayer and Coles became dormant.

The taxpayer refurbished the stores previously owned by Coles and rebranded them as its own.

Thee taxpayer offset Coles’ losses against its own trading profits in the corporation tax return for the year ended 31 March 2010 on the basis it had succeeded to Coles’ trade (TA 1988 s 343).

HMRC accepted there had been a succession but disallowed the losses saying they had to be matched to the trade to which the taxpayer had succeeded which was Coles’ trade only.

The taxpayer appealed.

The First-tier Tribunal said...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon