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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Deduction of pre-entry losses: general

Allowable losses not deducted under these rules, both pre-entry losses and other allowable losses, are carried forward to later accounting periods under TCGA92/S8 (1). Pre-entry losses carried forward retain their identity as pre-entry losses, and are subject to the Schedule 7A restrictions in later periods.

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.