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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

Administration: introduction: losses

TCGA92/S16 (2A), FA95/S103 (7)(b), FA95/S113 (2)(b)

Self Assessment was introduced for companies within the charge to Corporation Tax for accounting periods ending on or after 1 July 1999.

Under Self Assessment capital losses are allowable only if they are claimed in a quantified amount. The time limit for claiming was six years after the end of the accounting period in which the loss was incurred. This was reduced to four years for most claims made on or after 1 April 2010. For further guidance refer to the Company Taxation Manual CTM90610.

The requirement to claim losses under Self Assessment means that they can be finalised by way of a Revenue amendment and appeal.

Where unused losses are brought forward and set against chargeable gains in a later accounting period, losses incurred after the start of Self Assessment must be used before earlier ones.

For the losses of individuals and others chargeable to Capital Gains Tax see CG15812 and CG15813

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