I still don't see that. I understand you would pay less tax on the combined profit, but the profit would be lower, and therefore the net position worse I'll look for a worked example to get it clear in my mind.  If it were beneficial to own a loss making company then every profitable company would take one on.

Partial to wrinkled stockings Ian?🙂

Agreed 

No it’s comes down as a legal way to pay less tax on profit. Plenty of business people do this from small one man bands to big corporate multi nationals.  

I follow that, but, isn't the net position worse than if you didn't own the loss making company?

I follow that, but, isn't the net position worse than if you didn't own the loss making company? My understanding is as per that set out by YeOldPitGate above.