SCHEDULES
SCHEDULE 4Corporate capital losses
PART 1Corporate capital loss restriction
Pre-entry losses
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1
Schedule 7A to TCGA 1992 (restriction on set-off of pre-entry losses) is amended in accordance with this paragraph.
2
In paragraph 6(1)(b), after “from that gain” insert “
(subject to sub-paragraphs (1A) to (1C))
”
.
3
In paragraph 6(1)(c), after “section 2A(1)” insert “
(subject to sub-paragraphs (1A) to (1C))
”
.
4
After sub-paragraph (1) insert—
1A
Sub-paragraph (1B) applies, in respect of an accounting period, if the amount of chargeable gains accruing to the company in the period exceeds the total of—
a
the amount of pre-entry losses accruing to the company in the period that are deductible under sub-paragraph (1)(a), and
b
the amount of allowable losses, other than pre-entry losses, accruing to the company in the period.
1B
Where this sub-paragraph applies in respect of an accounting period—
a
the sum of any deductions under sub-paragraph (1)(b) may not exceed the total of—
i
the amount of pre-entry losses that, on the assumption in sub-paragraph (1C), would be deductible under sub-paragraph (1)(b), and
ii
the amount of allowable losses (other than pre-entry losses) that, on the assumption in sub-paragraph (1C), would be deductible under section 2A(1), and
b
for the purposes of sub-paragraph (1)(c), the deductions made under section 2A(1) may not exceed the difference between—
i
the total of the amounts mentioned in paragraph (a)(i) and (ii), and
ii
the amount of pre-entry losses deducted under sub-paragraph (1)(b).
1C
The assumption is that deductions under sub-paragraph (1)(b) are treated for the purposes of Part 7ZA of CTA 2010 (restrictions on obtaining certain deductions) as if they were made under section 2A(1)(b) of this Act.