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My client began an initially-successful limited company (Company A) in about 2008 as sole director and shareholder.
After 2012 the business slowly declined and had become unprofitable by 2016. He then began another company (Company B) again sole director and shareholder which was profitable from the outset and began lending considerable sums to company A which now amount to well over £100 000 and are undoubtedly irrecoverable.
Company A is now dormant but our client is anxious to obtain corporation tax relief on the loss of Company B’s money. I have explained the problems surrounding the companies being connected and their trades being distinctly different.
There were losses for the last five years of trading so there is not even any terminal loss relief to carry-back.
Are there any viable ways forward?
Query 19 981 – Loss-Relief Seeker.
