CG10741 - Persons chargeable: companies

The profits' of a company which are chargeable to Corporation Tax comprise income andchargeable gains, and chargeable gains’ are defined as having the same meaning as for thepurposes of Capital Gains Tax, that is, they are in general computed in the same way, see CG40200+. Although for assessment purposesthe income and chargeable gains are merged into one amount of profits', they arenevertheless computed separately so that income’ losses are not allowable against capitalgains, nor capital losses against income. (See, however, CTM04500 onwards as regards the set-off of trading losses.) There are various rules which apply to particular types ofcompanies and these are to be found in Part VI of TCGA92, see CG41000+.