PART 1Income tax, corporation tax and capital gains tax
CHAPTER 4Other provisions
Capital gains
63Avoidance involving losses
1
In section 184G of TCGA 1992 (avoidance involving losses: schemes converting income to capital)—
a
for subsections (2) and (3) substitute—
2
Condition A is that a receipt or other amount arises to a company directly or indirectly in consequence of, or otherwise in connection with, any arrangements.
3
Condition B is that—
a
that amount falls to be taken into account in calculating a chargeable gain (the “relevant gain”) which accrues to a company (“the relevant company”), and
b
losses accrue (or have accrued) to the relevant company (whether before or after or as part of the arrangements).
b
in subsection (4), for “the receipt” substitute “
the amount mentioned in subsection (2)
”
.
2
In section 184H of that Act (avoidance involving losses: schemes securing deductions)—
a
in subsection (2)(b), omit “on any disposal of any asset”,
b
for subsection (3) substitute—
3
Condition B is that the relevant company, or a company connected with the relevant company, becomes entitled to an income deduction directly or indirectly in consequence of, or otherwise in connection with, the arrangements.
c
in subsection (4), for paragraph (a) substitute—
a
that income deduction, and
d
in subsection (10), after the definition of “arrangements” insert—
“income deduction” means—
a
a deduction in calculating income for corporation tax purposes, or
b
a deduction from total profits,
3
The amendments made by this section have effect—
a
in relation to arrangements entered into on or after 30 January 2014, and
b
in relation to arrangements entered into before that date but only to the extent that any chargeable gain accrues on a disposal which occurs on or after that date.