Part VIU.K. Companies, oil, insurance etc.

Chapter IU.K. Companies

[F1Restrictions on buying losses or gains etcU.K.

Textual Amendments

F1Ss. 184A-184F and cross-heading inserted (with effect in accordance with s. 70(6)-(8) of the amending Act) by Finance Act 2006 (c. 25), s. 70(2) (with s. 70(10)-(11))

184ARestrictions on buying losses: tax avoidance schemesU.K.

(1)This section applies for the purposes of corporation tax in respect of chargeable gains if—

(a)at any time (“the relevant time”) there is a qualifying change of ownership in relation to a company (“the relevant company”) (see section 184C),

(b)a loss (a “qualifying loss”) accrues to the relevant company or any other company on a disposal of a pre-change asset (see subsection (3)),

(c)the change of ownership occurs directly or indirectly in consequence of, or otherwise in connection with, any arrangements the main purpose, or one of the main purposes, of which is to secure a tax advantage (see section 184D), and

(d)the advantage involves the deduction of a qualifying loss from any chargeable gains (whether or not it also involves anything else).

(2)A qualifying loss accruing to a company is not to be deductible from chargeable gains accruing to the company F2... .

(3)In this section a “pre-change asset” means an asset which was held by the relevant company before the relevant time (but see also sections 184E and 184F).

(4)In this section “arrangements” includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).

(5)For the purposes of this section it does not matter—

(a)whether a qualifying loss accrues before, after or at the relevant time,

(b)whether a qualifying loss accrues at a time when there are no chargeable gains from which it could be deducted (or could otherwise have been deducted), or

(c)whether the tax advantage is secured for the company to which a qualifying loss accrues or for any other company.]

Textual Amendments

F2Words in s. 184A(2) repealed (with effect in accordance with s. 32(7) of the amending Act) by Finance Act 2007 (c. 11), s. 32(2), Sch. 27 Pt. 2(4)