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HMRC internal manual

Capital Gains Manual

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Capital loss buying: pre-FA93: News International case: decision

The High Court held that when the gain laden assets were transferred by News International plc to its fellow group member, Lyntress Ltd, there was an intention to sell those assets out of the group. There was no evidence, however, to show that arrangements had been made for the specific disposals which eventually occurred. In consequence, therefore, on the particular facts found by the Commissioners there was no pre-ordained series of transactions including the eventual disposals which could be regarded as a single composite whole.

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.