Tax Loss Continuity Rules 2025

Description

We look at the new Inland Revenue guidance and reveal how your company can carry forward tax losses—even after shareholder changes—by mastering the business continuity rule with expert insights and real-world case studies

Companies can carry forward tax losses, even if there has been a breach of shareholder continuity, provided there has not been any “major change” to the company’s business during the continuity period.

This webinar considers the application of the business continuity rule, including:

• when the new business continuity rule applies, and what losses it applies to;
• how business continuity is assessed, including what factors are relevant and what business changes can be disregarded;
• how long a company needs to maintain the same business after a shareholding change; and
• what anti-avoidance rules apply to ensure the business continuity rule works as intended.

Inland Revenue guidance (including newly-issued guidance) on how the business continuity rule applies will also be considered, along with a number of practical case studies.

LEARNING OUTCOMES

You will:

• Understand when the business continuity rule applies to allow a company that breaches the 49% shareholder continuity test to carry forward tax losses.
• Know the extent to which the business continuity rule can apply to old losses, and to loss companies which have been dormant before a shareholding change.
• Learn what factors are relevant when assessing whether there has been a major change to a company’s business.
• Know how long business continuity must be maintained after a shareholding change.
• Learn about the anti-avoidance rules which have been introduced to ensure the business continuity test applies as intended.
• Understand the interaction between the business continuity rule and the loss grouping rules.
• Be aware of recent Inland Revenue guidance on the application of the business continuity rule.

SUITED TO

Accountants of all levels, tax lawyers, corporate lawyers and others who assist or advise on the sale and purchase of shares.

PRESENTER

Harry Waddell, Partner, Tomlinson Law

Harry Waddell is a partner at Tomlinson Law. Prior to joining Tomlinson Law, Harry worked as a senior tax manager in an international accounting firm. Harry has an LL.B. and a M.Com. (1st class honours) from the University of Canterbury, and is currently studying for a PhD part-time at the University of Canterbury. Harry has advised a number of companies on the application of the business continuity rule.