Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Restrictions: pre-entry loss: anti-flooding rule for pooled assets

In arriving at the cost or disposal proceeds of the notionally separate asset, there is a pro rata apportionment between the assets included in the notionally separate asset and other assets acquired or disposed of at the same time, paragraph 3(9) as applied by paragraph 4(11) Schedule 7A.

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.