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HMRC internal manual

Capital Gains Manual

Restrictions: capital losses: pre-entry loss: FA 1994


FA1994 introduced restrictions on the extent to which, for disposals on or after 30 November 1993, indexation allowance can create or increase a loss, see CG17700+. This required consequential changes to the time-apportionment formula. These are described in the relevant instructions.

Note: Additional rules relating to loss buying were enacted in FA 2006. See CG47020+ for guidance on the rules which apply in priority to TCGA92/SCH7A for accounting periods ending on or after 5 December 2005.

FA11/S46 and FA11/SCH11 greatly simplified the rules in TCGA92/SCH7A for the deduction of losses on or after 19 July 2011. See CG47400+ for guidance on loss streaming from that date.