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In part a 1 newco ltd
We hav 65000 bf losses n we stll hav 10000 ttp remains so why we r nettng it off??
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My Dear
The brought forward trading losses should only be offset against the same nature of trade income the future year; however, it should not be adjusted against the capital gain (10,000 figure is capital gain profit) that is why it should not netting it off under the Yoko Ltd. total profit.
Further the 65000 set off to get the tax efficient strategy to save the maximum corporation tax at the main pool rate.
Actually the brought forwarded looses was not surrendered to group of companies. It is the 80,000 current year that was surrendered as follow:
1. 15,000 set off against the profit of Wahzah Ltd. to reduced at marginal rate i.e. 21.25% and
2. Remaining will surrendered against the Epson Ltd. i.e. 65,000
total will be the 80,000 current year instead of brought forwarded losses adjustment.
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