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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Targeted anti-loss buying rule - asset no longer regarded as a pre-change asset

TCGA92/S184E(1) provides that an asset is no longer regarded as a pre-change asset where it is disposed of by a company other than the relevant company, and that other company acquired the asset by way of a transfer to which TCGA92/S171(1) did not apply. This is because the loss targeted by the legislation will have accrued to the relevant company on the occasion of the transfer to which TCGA92/S171(1) did not apply.

In order to prevent opportunities for avoidance, the relaxation of the rule afforded by TCGA92/S184E(1) does not apply if the company other than the relevant company acquired the asset by way of a transfer to which TCGA92 S139, 140A or 140E applied (TCGA92/S184E(10) and (11)).