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HMRC internal manual

Capital Gains Manual

Groups: loss restriction by reference to capital allowances

TCGA92/S41 (3) provides that if there is continuity of treatment for capital allowances purposes on

  • a transfer covered by an election under CAA01/S569 (common control or connected persons - transfer at written down value)
  • a transfer under CAA01/S268 (succession to trade on death)then the restriction of the capital loss on a subsequent disposal of the asset takes account of capital allowances given to the previous owner. Where there is an unbroken series of such transfers then the capital loss restriction takes account of capital allowances given to all previous holders of the asset in the series.