Taxation of Chargeable Gains Act 1992 section 1F

Allowable losses to be used in most beneficial way etc.

Section 1F establishes the rules for how allowable capital losses should be set against chargeable gains, ensuring they are used in the most tax-efficient manner for the taxpayer.

• Allowable losses may be deducted from chargeable gains in whichever way is most beneficial to the taxpayer, regardless of the rate of CGT that would otherwise apply to those gains.
• Losses can only be offset against gains to the extent needed to eliminate those gains — they cannot be deducted beyond that point.
• No part of an allowable loss may be relieved more than once under the Act.
• Any amount already relieved under the Income Tax Acts cannot also be relieved under the capital gains tax rules.