Lee Sharpe looks at some important tax considerations when closing a property company.
The article focuses primarily on UK-resident companies owned by individuals, undertaking mainly property investment business, rather than development/trading (although there is some consideration of group relief for property losses).
Is the property business making losses?
Property business losses brought forward may be set against total profits (CTA 2010, s 62). This is basically unchanged under the 2017 corporate loss reforms (introduced in F(No.2)A 2017, Sch 4), except:
- The loss amount has to be decided and claimed, rather than following automatically; and
- Property losses arising since 1 April 2017 may be carried forward and still group relieved (under what is now CTA 2010, Pt 5A), but:
- the
