TTM08020 - Chargeable Gains: Outline

Capital losses

Capital losses brought forward into Tonnage Tax

A tonnage tax election does not affect the treatment of allowable losses that arose before entry into Tonnage Tax. A tonnage tax company may therefore set off the full amount of any capital losses arising before it became a tonnage tax company against chargeable gains arising whilst it is a tonnage tax company.

Capital losses arising to tonnage tax company

As the normal CGT rules apply unless expressly amended by the tonnage tax rules, a tonnage tax company may also utilise or carry forward any capital losses arising during the regime, including:

• Losses arising on the disposal of tonnage tax assets, calculated as described in TTM08200.
• Losses arising on the disposal of non-tonnage tax assets, calculated using the normal CGT rules.

References