CIOT comments on proposed capital loss restriction

Released 04 September 2019

The Chartered Institute of Taxation (COT) has commented on draft Finance Bill legislation, which will give effect to the corporate capital loss restriction (CCLR) proposals originally announced at the 2018 Budget.

Broadly, for accounting periods ending on or after 1 April 2020, it is proposed (subject to enactment of Finance Bill 2019-2020) that a company will only be able to use its carried-forward capital losses to relieve chargeable gains of future periods:

up to an amount equal to the company’s deductions allowance; and

50% of chargeable gains in excess of its deductions allowance.

View the Institute’s submission here.

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