BIM80630 - Computing the amount to assess: business changes: succession and changes in ownership - effect of succession on the charge to tax
Where there is a succession or change of ownership of a business, the predecessor바카라 사이트™s profits are computed as if the trade had been permanently discontinued, and the successor바카라 사이트™s profits are computed as if the trade had been newly set up and commenced. In other words, there is a 바카라 사이트˜deemed바카라 사이트™ cessation (see BIM81025) and a 바카라 사이트˜deemed바카라 사이트™ commencement (see BIM81015). The deemed cessation of a trade normally prevents the carry forward of losses. So the successor cannot set off losses sustained by the predecessor. But if a company sells its trade to a third party and reacquires it some years later it can carry forward trading losses from the earlier period to the later period. There are also special rules where a trade or part-trade is transferred between companies in common ownership (CTM06000 onwards).