Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
As companies are not subject to the Capital Gains Tax (CGT) regime then any trading in shares is conducted through the trading account. Thus such transactions will be so reflected in the Profit and Loss Account and in the event of a loss in the relevant year then that loss can be carried forward indefinitely.
I do hope that my reply has been of assistance.
As I told you CGT does not apply to companies. Thus if an implied loss is passed through the P&L account there is no reason why it should not be set against Corporation Tax.
In the circumstances set out I am of that opinion. I suggest that this is unlike;ly to be challenged by HMRC.
Thank you for your support.