Jennifer Adams reviews the tax reliefs available to businesses that continue to operate even when making a loss.
One of the ‘badges of trade' used by HMRC to determine if a trade is being conducted is the presence of a 'profit motive' where the “object of acquiring an asset was to re-sell it at a profit, without any intention of holding it as an investment.”
However, for various reasons, a business may incur losses instead of profits. The method of loss relief depends on several factors and scenarios.
