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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Groups to which loss set-off restrictions apply: unrealised losses: rule

TCGA92/SCH7A/PARA9 (2) (b)

The main general rule for unrealised losses is in paragraph 9(2)(b). If the loss on the disposal of an asset has not been brought into any group as a realised loss, the loss set-off restrictions apply to the group of which the company making the disposal is a member at the time of the disposal. Or if the company is not a member of any group at the time of the disposal, the loss set-off restrictions apply to the group of which it was most recently a member.

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.