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HA 22: Group companies using tax losses
or “How qualifying companies can share tax losses within a group”
You could also call this:

“Tax losses can't be carried forward when non-qualifying companies merge with qualifying companies”

When a company that is not a qualifying company joins together with a qualifying company and stops existing, there are special rules about what happens to its tax losses from previous years. You can’t carry forward these tax losses to use in the year when the companies join or in future years. This is different from the usual rules about tax losses. The part of the tax law that normally deals with carrying forward tax losses doesn’t apply in this situation.

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Next up: HA 24: Treatment of tax losses other than certain foreign losses

or “Rules for handling most tax losses have been removed”
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Part H Taxation of certain entities
Qualifying companies (QC)

HA 23Treatment of tax losses on amalgamation

  1. If a company that is not a qualifying company amalgamates with a qualifying company and ends its existence on the amalgamation, subpart IA (General rules for tax losses) does not apply to carry forward the amalgamating company’s loss balance from earlier income years either to the income year of the amalgamation or to later income years.

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