The ‘relevant liabilities’ of a successor company were held to have exceeded the ‘relevant assets’ of the predecessor company, so no losses were available to carry forward on the succession of a trade. 

The appellant company claimed to be able to carry forward losses under ICTA 1988, s 343 in respect of its accounting periods ended 9 March 2005 and 30 April 2005 to 30 April 2009. The question of what losses were available to be carried forward by the appellant depended on the outcome of a separate appeal by another company (SSS). 

SSS was the ‘predecessor’ company of the appellant for the purposes of ICTA 1988, s 343, having previously carried on the trade which subsequently came to be carried on by the appellant. A dispute arose with HM Revenue and Customs about the quantum of losses which the appellant could carry forward under s 343