Corporation Tax Act 2010 section 357JI

Transfers of trade without a change of ownership

Section 357JI ensures that when a trade is transferred without a change of ownership, any losses from the transferred trade retain their classification as either Northern Ireland losses or mainstream losses, and this classification carries through to the successor company.

• This section applies where a trade is transferred without a change of ownership and the predecessor company has made losses in that trade
• Losses from the transferred trade must be identified as either Northern Ireland losses or mainstream losses
• The rules that modify how trade losses are carried forward on a transfer (sections 943A to 944C) operate by reference to these classified losses rather than to losses generally
• The successor company inherits the losses with their Northern Ireland or mainstream classification preserved intact