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HMRC internal manual

Capital Gains Manual

Restrictions: pre-entry loss: time limit for market value election


The time limit for the election is

  • two years from the end of the accounting period in which the loss arose,


  • such longer period as the Board may allow.

For the initial two years following the passing of Finance Act 1993, the Board have extended the period when claims may be admitted, see CG47725. Except where that instruction applies, you should follow the instructions at CG13800+ if a company makes an election outside the two year time limit.

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.