Taxation of Chargeable Gains Act 1992 section 279D

Elections under section 279A

Section 279D sets out the procedural requirements and information that must be included when a taxpayer makes an election under section 279A to carry back a loss arising on the disposal of a right to deferred unascertainable consideration.

• An election under section 279A is irrevocable and must be made by written notice to HMRC, filed no later than the first anniversary of the 31 January following the tax year in which the loss arose
• The notice must specify key details including the amount of the loss, the right disposed of, the years of disposal and acquisition, the original asset(s), and the eligible year to which the loss is to be carried back
• The notice must also state the first year limit and how much of the loss is to be deducted from chargeable gains in the chosen year, together with details of any amounts to be deducted in later eligible years and the corresponding later year limits
• Where a taxpayer makes more than one election on the same day, the notices must specify the order in which the elections are to be treated as made, and each separate loss requires its own separate notice