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B Ltd. is 100% subsidiary of A Ltd. Company A LTD. has chargeable gains of 100000 and Company B Ltd. has capital losses of 70000. Both companies prepare A/c’s on 31 march 2018.
But company A ltd. has capital losses b/f from y/e 31march 2017 of 50000. what is the maximum loss that can be transferred from B.ltd to A ?
Is the full 70000 allowable ..
or A ltd. must first set off b/f losses of 50000 and then only 50000 remains for B ltd’s losses ?There is no maximum loss as any part of a current period loss made by one gains group member may be treated as having been made by any other gains group member – the election would at least be made for 50,000 to remove any chargeable gain from A Ltd – it is then a question of in which company that you prefer to carry forward the 20,000 remaining loss
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