Finance Act 2014

63 Avoidance involving losses U.K.

(1) In section 184G of TCGA 1992 (avoidance involving losses: schemes converting income to capital)—

(a) for subsections (2) and (3) substitute—

“(2) Condition A is that a receipt or other amount arises to a company directly or indirectly in consequence of, or otherwise in connection with, any arrangements.

(3) Condition B is that—

(a) that amount falls to be taken into account in calculating a chargeable gain (the “relevant gain”) which accrues to a company (“the relevant company”), and

(b) losses accrue (or have accrued) to the relevant company (whether before or after or as part of the arrangements).”, and

(b) in subsection (4), for “the receipt” substitute “ the amount mentioned in subsection (2) ”.

(2) In section 184H of that Act (avoidance involving losses: schemes securing deductions)—

(a) in subsection (2)(b), omit “on any disposal of any asset”,

(b) for subsection (3) substitute—

“(3) Condition B is that the relevant company, or a company connected with the relevant company, becomes entitled to an income deduction directly or indirectly in consequence of, or otherwise in connection with, the arrangements.”,

(c) in subsection (4), for paragraph (a) substitute—

“(a) that income deduction, and”, and

(d) in subsection (10), after the definition of “arrangements” insert—

““income deduction” means—

(a) a deduction in calculating income for corporation tax purposes, or

(b) a deduction from total profits,”.

(3) The amendments made by this section have effect—

(a) in relation to arrangements entered into on or after 30 January 2014, and

(b) in relation to arrangements entered into before that date but only to the extent that any chargeable gain accrues on a disposal which occurs on or after that date.