CTM04200 | Corporation Tax: trading losses: general: relief for losses carried forward: companies going into partnership
From HM Revenue & Customs · Company Taxation Manual
Where a trading company
takes another person into partnership, and
continues to carry on the same trade,
it can
carry forward any losses incurred by it in that trade before the formation of the partnership, and
set-off the losses under () against its share of the partnership trading income.
This treatment applies where the partnership comprises two or more individuals or companies of which one was the original trading company.