Taxation of Chargeable Gains Act 1992 section 8

Company's total profits to include chargeable gains

Section 8 establishes that chargeable gains made by a company are included within its total profits for corporation tax purposes, and sets out how those gains are calculated.

• Chargeable gains accruing to a company form part of its total profits for corporation tax, after deducting any allowable losses.
• The chargeable gains included in total profits are calculated by taking the total gains for the accounting period and subtracting allowable capital losses from that period and any unused losses brought forward from earlier periods.
• Brought-forward losses can only be set against gains to the extent that gains remain after current-year losses have been deducted — they cannot create or increase an overall capital loss.
• The Finance Act 2019 amended this section as part of broader reforms to how corporation tax interacts with the chargeable gains regime.

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