For updates affecting this Division please see Part C0 Updates
C1.501 Allowable capital losses—types of losses and targeted anti-avoidance rule
For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.104, C1.103 and C1.102 respectively.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
This article discusses the targeted anti-avoidance rule in TCGA 1992, s 16A which prevents a loss from being allowable where one of the main purposes is to obtain tax relief. For details of the computation of chargeable gains and losses, see C1.105.
For an overview of allowable capital losses, including how relief is given for allowable losses, see C1.106.
Allowable losses
Allowable losses are computed on the disposal of an asset in the same way as gains, unless there is express provision in the legislation to the contrary1.
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