CG40240B - Capital loss anti-avoidance rule: general

The FA 2006 amendments to TCGA92/S8 will not apply where there is a genuine commercial transaction that gives rise to a real commercial loss as a result of a real commercial disposal. In these circumstances there will be no arrangements with a main purpose of securing a tax advantage. Conversely, where there is either no genuine commercial disposal, or no real commercial loss, or no real commercial disposal or any combination of the foregoing then there are likely to be arrangements in place with a main purpose, orone of the main purposes, of securing a tax advantage so the legislation will apply.