How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

There are 2 limited UK companies under common control of individual

Customer Question

There are 2 limited UK companies under common control of individual shareholders . Company A is profitable but company B is loss making , can the loss in company B be used for tax relief in Company A ?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Sorry no, they are not part of a Company Group. Were this so losses can be relieved upwards, downwards and side ways, but they are not.
However, all is not lost. Company B merely issues an invoice to Company A for services. This reduces B's losses and ditto Company A's profits. Simple, as the Mercat in the TV advert would say.
This is exactly how the big boys like Amazon, Starbucks and Vodafone for example remove profits from the UK to tax havens like Gibraltar and the Turks and Caicos Islands, although the Chancellor has just put a brake on that for multi nationals in his Autumn Statement.
I do hope I have shed some light on your problem and shown you a way forward.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.