Using acquired trading losses (Leekes Ltd v HMRC)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What was the dispute about?
• What did the court decide?
• Case details

Article summary

Tax analysis: The Court of Appeal (CA) upheld the decision of the Upper Tribunal (UT) that the purchaser of a trade could only use the historic losses of that trade against the future profits of the acquired business, not against the profits of the trade that the purchaser had carried on prior to the acquisition.