CG40230 - Administration: introduction: losses
Any capital losses which accrue to a company in an accounting period are to be set against chargeable gains arising in the same accounting period, Section 8(1)(a). To the extent they are not utilised in this way, the losses of an accounting period are carried forward to set against chargeable gains of future accounting periods, Section 8(1)(b).
Note: Additional rules placing a restriction on a company’s allowable losses were enacted in FA 2006. See CG47020+ for guidance on the rules which apply to losses which accrue on or after 5 December 2005.