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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Restrictions: capital losses: time-apportionment: pooled assets

The provisions in paragraph 3 Schedule 7A only apply if, apart from Schedule 7A, the general computational rules identify a disposal as a disposal of the whole or part of a pool. If there is a pool of assets, but the general computational rules identify particular disposals with particular acquisitions outside the pool, paragraph 3 Schedule 7A does not apply on that disposal. This may happen where particular disposals are identified with particular acquisitions outside the pool under the following provisions

  • TCGA92/S105 (same day rule, see CG51610)
  • TCGA92/S107 (3) (ten day rule, see CG51615 - CG51616)
  • TCGA92/S106 (disposals and acquisitions within prescribed period, see CG51611).

The paragraph 3 Schedule 7A rules only apply if, and to the extent that, a disposal represents a disposal of a pooled asset.

Note: Additional rules relating to loss buying were enacted in FA 2006 and TCGA92/S106 was replaced. 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.