LossesU.K.
This section has no associated Explanatory Memorandum
42.—(1) If the effect of any computation under regulations 39 to 41 would be to produce a loss, the basic gain on the disposal is nil.
(2) Paragraph (1) applies notwithstanding section 16 of TCGA 1992 M1 (losses determined in like manner as gains).
(3) Accordingly, for the purposes of these Regulations, no loss is to be treated as arising on the disposal.
Marginal Citations
M1Section 16 was amended by section 113(1) of the Finance Act 1995, paragraph 7 of Schedule 4 to the Finance (No. 2) Act 2005 (c. 22), paragraph 298 of Schedule 1 to the Income Tax Act 2007 (c. 3) and paragraph 61 of Schedule 7 to the Finance Act 2008.