Deduction of pre-entry losses: general
The rules in paragraph 7 Schedule 7A, see CG47770+, set out the circumstances in which a pre-entry loss can be deducted from a chargeable gain. The next steps in the computation are to determine the total losses deducted from the total chargeable gains of the accounting period, and to determine which losses carried forward to later periods are pre-entry losses.
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.