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HMRC internal manual

Capital Gains Manual

Administration: introduction: losses


Any capital losses which accrue to a company in an accounting period are to be setagainst chargeable gains arising in the same accounting period, Section 8(1)(a). To theextent they are not utilised in this way, the losses of an accounting period are carriedforward to set against chargeable gains of future accounting periods, Section 8(1)(b).

Note: Additional rules placing a restriction on a company’s allowable losses wereenacted in FA 2006. See CG47020+ for guidance on the rules which apply to losses whichaccrue on or after 5 December 2005.