(1). Which of the following would be a valid reason to transfer a chargeable gain from HO Ltd to LF Ltd?
A LF Ltd has purchased a qualifying business asset such that the gain on the asset sold can be rolled over.
B LF Ltd has capital losses brought forward.
(2). In what circumstances can a pre-entry capital loss be used?
(3). State whether the following statements are true or false.
A The use of pre-entry capital losses is not restricted if no change is made to the nature or conduct of the trade of the company with the pre-entry losses.
B It is not possible to transfer capital losses between group companies.