Administration: introduction: losses
The deduction of losses from gains is subject to restriction in the case of a`pre-entry loss’, TCGA92/S184A F and TCGA92/SCH7A. A pre-entry loss is a realisedloss which a company brings into a group, or the pre-entry proportion of the loss on anasset which a company brings into a group. Detailed instructions are at CG47000+.
Note: Additional rules placing a restriction on a companys allowable losses wereenacted in FA 2006. See CG47020+ for guidance on the rules which apply to losses whichaccrue on or after 5 December 2005.