D2.456 Restriction on buying gains
In a similar vein as the restrictions on pre-entry losses, there are restrictions preventing the use of pre-entry gains. For details of the loss-buying rules see D2.402–D2.404. The principle behind these targeted anti-avoidance rules is that a company's capital losses should only be available for use against its own capital gains, or those of companies that were under the same economic ownership when the loss arose and when the loss is utilised.
Where the following conditions are met, capital losses cannot be set against chargeable gains1:
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(a)ÌýÌýÌýÌý there is a qualifying change of ownership of the relevant company (see D2.402)
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(b)ÌýÌýÌýÌý a gain (a 'qualifying gain') accrues to the relevant company or to any other company on the
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