| Commentary

60 Capital allowances and loss relief

| Commentary

60 Capital allowances and loss relief

Where a company transfers a trade or part of a trade to another company, there is usually a disposal of relevant assets for capital allowance purposes and there is the danger of balancing charges arising. Equally, if the transferring company has trading losses, the transferee is not generally able to set off these losses against future trading income of the trade or part disposed of. However, under Sections 938 to 953 of the Corporation Tax Act 2010, where there is no change of ownership, the change is ignored for the purposes of capital allowances

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