Deduction of pre-entry losses: general
The general rule in TCGA92/S8 (1) states the amount to be included in a company’s total profits for an accounting period in respect of chargeable gains. This is
- the total of the chargeable gains accruing in the period
- any allowable losses accruing in the period
- any allowable losses brought forward from previous periods while the company was within the charge to Corporation Tax.
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.