70 Restrictions on companies buying losses or gains
Finance Act 2006 (2006 c 25) | Legislation

70  Restrictions on companies buying losses or gains

(1)     TCGA 1992 is amended as follows.

(2)     After section 184 insert—

“Restrictions on buying losses or gains etc

184A Restrictions on buying losses: tax avoidance schemes

(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 unless the gains accrue to the company on a disposal of a pre-change asset.

(3)

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