Unallowed capital lossesE+W+S
4(1)Any unallowed capital losses of an existing body shall be treated as allowable capital losses accruing to the appropriate successor company on the diposal of an asset on the transfer date.E+W+S
(2)Immediately before the transfer date the unallowed capital losses of the Electricity Council shall be divided between the existing bodies in England and Wales; and there shall be allocated to each such body such proportion (if any) of those losses as is given by the formula—
where—
A is the amount which, but for section 511(2) of the 1988 Act and the corresponding earlier enactments, would have been the amount of the unallowed capital losses of that body;
B is the aggregate of the amounts which, but for that section and those enactments, would have been the amounts of the unallowed capital losses of those bodies.
(3)In this paragraph—
“allowable capital losses” means losses which are allowable for the purposes of the [F21992 Act];
“unallowed capital losses”, in relation to any body, means any allowable capital losses which have been accrued to that body before the transfer date, in so far as they have not been allowed as deductions from chargeable gains.
Textual Amendments
F2Words in Sch. 11 para. 4 substituted (6.3.1992 with effect for the year 1992-93 and subsequent years of assessment) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 20(3).