Tax Considerations for Insolvent Groups

In light of the current economic climate it is becoming increasingly common to see the financial press reporting on a number of companies becoming embroiled in financial difficulties. When a corporate group is in serious financial difficulty some of the group companies may still be solvent on a stand-alone basis and will continue trading some will be put into administration and others into liquidation.

This article examines how the insolvency process can impact on the tax position of group companies. In particular it focuses on group relief for trading losses and the use of capital losses. It also examines the practical effects of the recent changes made to SDLT...