Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 12

Unrelieved Case VII losses

Paragraph 12 of Schedule 11 deals with the treatment of historic losses that arose under the old Case VII of Schedule D and were never relieved against income tax, allowing them to be carried forward as allowable losses for capital gains tax purposes.

• Losses that were allowable under the former Case VII of Schedule D (which dealt with certain short-term capital gains taxed as income) can be converted into allowable losses for capital gains tax.
• This applies only where no income tax relief was given for the loss, or for the unreleased part of the loss, for any tax year before 1971–72.
• The loss is treated as an allowable capital loss even though it originally accrued before the 1971–72 tax year.
• Any such converted loss remains subject to the restrictions on losses arising from transactions between connected persons under section 18 of the Act.