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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Non-resident companies: losses: - general

TCGA92/S13 is concerned with the apportionment of gains not losses. If the disposal by the non-resident company gives rise to a loss then that loss cannot be apportioned to UK residents for them to set it off against their other gains. However, the loss can be set-off

  • against gains made by the same company in the same year of assessment
  • against gains made by other non-resident companies which have been apportioned to the taxpayer in the same year of assessment.

Losses of the same company (TCGA92/S13(8))

If the non-resident company makes gains and losses in the same year of assessment the losses can be set off against the gains. Any surplus losses cannot be carried forward or back to set-off against gains arising in a different year of assessment.

Losses of different companies

If the UK resident is a participator in more than one non-resident company the proportion of the gains and losses of those companies apportioned to the UK resident can be set off against each other in the same year of assessment. Any surplus loss cannot be carried forward or back to set against the gains arising in different years of assessment.