Policy paper

Corporation Tax and Income Tax: tax treatment of appropriations to trading stock

This measure details changes to prevent abuse of flexibility in the tax code for capital losses.

Documents

Draft clause

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Draft explanatory notes

Details

This measure removes the option for businesses to elect under section 161 Taxation of Chargeable Gains Act 1992 for capital losses that would otherwise arise where an asset is appropriated to trading stock to be treated as trading deductions which can be offset against the total trading profits of the business.

Published 8 March 2017