Taxation of Chargeable Gains Act 1992 section 184B

Restrictions on buying gains: tax avoidance schemes

Section 184B prevents companies from using tax avoidance arrangements involving a change of ownership to offset losses against chargeable gains on pre-change assets.

• Where a qualifying change of ownership occurs in connection with arrangements designed to secure a tax advantage, losses cannot be set against qualifying gains arising on disposals of pre-change assets
• A pre-change asset is one held by the relevant company before the change of ownership took place, with further detailed rules covering basic and pooling scenarios
• The definition of arrangements is deliberately broad, covering any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable
• The restriction applies regardless of when the qualifying gain arises, whether losses exist at that time, or which company in the arrangement benefits from the tax advantage