CG57295 - Non-resident companies: losses: - general

TCGA92/S13* is concerned with the apportionment of gains not losses. If the disposal by the non-resident company gives rise to a loss then that loss cannot be apportioned to UK residents for them to set it off against their other gains. However, the loss can be set-off

• against gains made by the same company in the same year of assessment
• against gains made by other non-resident companies which have been apportioned to the taxpayer in the same year of assessment.

The term year of assessment means the year of assessment for a UK resident individual. Where the participator is a UK resident company the references to year of assessment are references to accounting periods of the participator.

Losses of the same company (TCGA92/S13(8))

If the non-resident company makes gains and losses in the same year of assessment the losses can be set off against the gains. Any surplus losses cannot be carried forward or back to set-off against gains arising in a different year of assessment.

Losses of different companies

If the UK resident is a participator in more than one non-resident company the proportion of the gains and losses of those companies apportioned to the UK resident can be set off against each other in the same year of assessment. Any surplus loss cannot be carried forward or back to set against the gains arising in different years of assessment.

*TCGA92/S13 was re-written for disposals from 6 April 2019 see CG10150.