This practice note deals with the issue of using and preserving the losses of an insolvent company, both generally and in the contexts of a hive down of its assets and business, and of group relief. NOTE: This resource is being reviewed in light of the March 2015 Budget. For more information, see Legal update, March 2015 Budget: business tax implications.
This practice note explains the way that accounts are prepared, what the different elements of accounts are designed to achieve, the source of the rules governing their content and how they are applied in practice. It also deals with some common misconceptions about accounts that can lead to a misunderstanding about what accounts do and do not show.