(iii) Explain the potential corporation tax (CT) implications of Tay Limited transferring

(iii) Explain the potential corporation tax (CT) implications of Tay Limited transferring work to Trent Limited,

and suggest how these can be minimised or eliminated. (3 marks)

(iii) Trading losses may not be carried forward where, within a period of three years there is both a change in the ownershipof a company and a major change in the nature or conduct of its trade. The transfer of work from Tay Limited to TrentLimited is li