Taxation of Chargeable Gains Act 1992 section 177B

Restrictions on setting losses against pre-entry gains

Section 177B previously imposed restrictions on the ability to set capital losses against gains that arose before a company joined a group (known as "pre-entry gains"), but this section has been repealed.

• Section 177B was introduced by the Finance Act 1998 to restrict the use of capital losses against pre-entry gains within company groups.
• The section prevented companies from using losses to shelter chargeable gains that had accrued before the loss-making company became a member of the group.
• The provision was repealed by the Finance Act 2006 with effect from 5 December 2005.
• Since repeal, the restrictions previously contained in this section no longer apply, though they may still be relevant for historical periods before 5 December 2005.