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Article by listed accountant Annja Louca

  Assessed Loss Statement  

Did you know that you can’t transfer an assessed loss from one business to another business?

The reason people usually buy companies or entities with a huge assessed loss, is because the assessed loss can be an asset for a profitable business because the loss can be utilised against the profits of the new business. But the operations need to be carried on in the company’s records with the assessed loss.

There are also other things to consider. If your business does not trade during the financial year, then you forfeit the right to carry over assessed losses. This means that if you only have expenses and no income, that you probably did not trade and SARS will disallow you from using the assessed loss.  

Your loss may also be ring-fenced if you comply with the 3-out-of-5 years rule or carry on a listed suspect trade.

Contact us at Anlo for further information or questions at or on (011) 658-1324