CG15801 - Losses: deduction of trading losses

TCGA92/S261B

Section 261B TCGA92 extends relief for losses incurred by a person in carrying on a trade, profession, vocation or employment to include a set-off against chargeable gains as an allowable CGT loss.

For further guidance, including the effect of an event leading to a reduction of the amount chargeable to Capital Gains Tax occurring after the deemed allowable loss has become final, see BIM75420 onwards.

The amount treated as an allowable loss is limited to the lower of

• the amount of the loss claimed against general income which cannot be deducted in calculating the person’s net income for the year. (See Sections 71 and 130 ITA07), or
• the net amount of the person's chargeable gains for the year disregarding the annual exempt amount see Section 261C.