In Leekes v HMRC, Leekes Ltd (Leekes) acquired the loss-making trade of its subsidiary. The Court of Appeal had to determine whether the losses of the transferred trade could be set off against profits of Leekes' enlarged trade or should be streamed against future profits of the acquired trade. The court found in favour of HMRC and held that, notwithstanding any practical difficulties involved with streaming, the wording of the legislation was clear and any historic losses could only be set against future profits of the acquired trade.
Read the full article here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
