Taxation of Chargeable Gains Act 1992 section 2D

Application of CGT principles in calculating gains and losses

Section 2D establishes that when calculating a company's chargeable gains for corporation tax purposes, the rules and principles of capital gains tax are applied, treating accounting periods as if they were tax years.

• A company's total chargeable gains for an accounting period are calculated using capital gains tax principles rather than a separate set of corporation tax rules.
• All questions about what amounts count as chargeable gains or allowable losses, how gains or losses are calculated, what is charged to tax, and when amounts are treated as accruing are determined under capital gains tax rules, with accounting periods standing in for tax years.
• This means that the same framework used for individuals under CGT — including rules on computation, timing, and recognition of gains and losses — broadly applies to companies, unless specifically overridden.
• The section is subject to any different or overriding provision found elsewhere in the Corporation Tax Acts, so where specific corporation tax legislation departs from CGT principles, those specific rules take priority.