Commentary

284 Major change in the nature of trade

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

284 Major change in the nature of trade

| Commentary

284 Major change in the nature of trade

As a company reorganisation will often result in a subsidiary or subsidiaries changing immediate ownership1, there may be a problem if there is also a major change in the nature or conduct of the trade2 carried on by that company within three years after the change of ownership. The company will no longer be able to set off trading losses incurred in an accounting period beginning before the change against any income or other profits of an accounting period ending after that change3.

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