An amendment to Finance Bill 2009 will shortly be tabled countering an avoidance scheme that has been disclosed to HMRC.
The scheme uses a trade reorganisation to exploit Corporation Tax rules which provide that losses, arising in a trade in the 12 months prior to its cessation, may be carried back and set off against profits made in the previous 3 years under Terminal Loss Relief.
The amendment will propose legislation effective for reorganisations occurring on or after 21 May 2009. Further details are available here