This client had been represented in his business by one of the very large reputable accounting firms in his previous business. The client had suffered large losses in excess of £ 200,000. His previous accountants and the HMRC had mutually agreed to end his investigation on the basis that no losses would be carried forward for future business activities the client gets involved in.
We were of the opinion that this was a wrong ‘mutual agreement’; it was a convenient resolve at the expense of the client’s interest. We re opened this matter with the HMRC , after a lengthy engagement which ended up in tribunal, the client was allowed to bring forward his losses in the current new venture he was involved in. This helped the client by not paying any tax for several years based on those brought forward losses.