UK:
Leekes And Loss Streaming From Tax Journal 2018
11 July 2018
Mishcon de Reya
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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.
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