Taxation of Chargeable Gains Act 1992 section 1E

Losses deductible only when within scope of tax etc.

Section 1E sets out the conditions under which capital losses can be treated as allowable losses and deducted from chargeable gains, with particular rules for non-UK residents and gains attributed from settlements.

• A loss is only allowable if, had a gain arisen instead in the same circumstances, that gain would have been chargeable to capital gains tax
• Non-UK residents may only set allowable losses against gains on disposals of assets that fall within the charge to CGT under section 1A(3), though losses from years of UK residence can still qualify
• Where gains are attributed to a settlor under section 86 from more than one settlement, any allowable loss deduction is apportioned across the settlements in proportion to the size of each attributed amount
• The only circumstance in which an allowable loss may be carried back to an earlier tax year is on the death of the individual, under section 62