Taxation of Chargeable Gains Act 1992 Schedule 4C paragraph 7

Reduction for allowable losses

Section 7 deals with how allowable losses arising under the trust transfer of value rules can be set against chargeable amounts arising from other transfers of value by the same trustees.

• Allowable losses arising under Schedule 4B from one transfer of value can reduce the chargeable amount of another transfer of value by the same trustees
• Losses are first set against chargeable amounts from other transfers in the same tax year, and if the losses are less than the total chargeable amounts, each chargeable amount is reduced proportionately
• Where losses exceed the chargeable amounts in a given year, the surplus is carried forward to the next year and treated as if it arose from a transfer in that year
• Any reduction for allowable losses is applied only after any deduction for gains already attributed to the settlor under paragraph 6