[F1 Part 1 U.K.Capital gains tax and corporation tax on chargeable gains

Textual Amendments

F1 Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2

Chapter 2 U.K.Corporation tax on chargeable gains

Corporation tax on chargeable gains: the general scheme U.K.

2A Company's total profits to include chargeable gains U.K.

(1) The amount of chargeable gains to be included in a company's total profits for an accounting period is the total amount of chargeable gains accruing to the company in the period after deducting—

(a) any allowable losses accruing to the company in the period, and

(b) so far as not previously deducted under this subsection, any allowable losses previously accruing to the company while it was within the charge to corporation tax.

(2) For the purposes of corporation tax on gains “allowable loss” does not include a loss accruing to a company if, had a gain accrued, the company would not have been chargeable to corporation tax on the gain.

[F2 (3)Subsection (4) applies if—

(a) a company has two or more accounting periods that fall wholly within the same financial year,

(b) the company is chargeable to corporation tax for each of those accounting periods only because of a chargeable gain accruing to the company on the disposal of asset, and

(c) in the period (if any) between each of those accounting periods, the company is not within the charge to corporation tax.]]

Textual Amendments

F2 S. 2A(3)(4) inserted (with effect in relation to accounting periods beginning on or after 1.4.2020) by Finance Act 2020 (c. 14), Sch. 4 paras. 39, 42 (with Sch. 4 paras. 43-46)

Modifications etc. (not altering text)

C1 S. 2A applied (with modifications) (with effect in accordance with Sch. 4 para. 43(1) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 44(2)(3)

C2 S. 2A(1)(a) modified (with application in accordance with Sch. 4 para. 45(1)(2) of the amending Act) by Finance Act 2020 (c. 14), Sch. 4 para. 45(3)

C3 S. 2A(1)(b) modified (retrospective to 29.10.2018) by Finance Act 2020 (c. 14), Sch. 4 para. 46