Part III Income Tax, Corporation Tax and Capital Gains Tax

Management: self-assessment etc.

113 Allowable losses: capital gains tax.

(1)

After subsection (2) of section 16 of the M1Taxation of Chargeable Gains Act 1992 (computation of losses) there shall be inserted the following subsection—

“(2A)

A loss accruing to a person in a year of assessment shall not be an allowable loss for the purposes of this Act unless, in relation to that year, he gives a notice to an officer of the Board quantifying the amount of that loss; and sections 42 and 43 of the Management Act shall apply in relation to such a notice as if it were a claim for relief.”

(2)

Deductions under that Act in respect of allowable losses shall be given preference as follows—

(a)

a deduction in respect of a loss accruing to a person in the year 1996-97 or a subsequent year of assessment shall be preferred to a deduction in respect of a loss accruing to him in an earlier year of assessment; and

(b)

a deduction in respect of a loss accruing to a company in an accounting period ending on or after the appointed day for the purposes of Chapter III of Part IV of the M2Finance Act 1994 shall be preferred to a deduction in respect of a loss accruing to the company in an accounting period ending before that day.