CG40241 - Capital loss anti-avoidance rule: Effect of the legislation and commencement
»Ê¹ÚÌåÓýapp effect of the FA 2006 amendments to TCGA92/S8 is that any capital loss arising on adisposal made on or after 5 December 2005 will not qualify as an allowable loss when it arises in connection with arrangements having a main purpose of obtaining a tax advantage.
Where the legislation applies, it will take effect to disallow losses that arise ondisposals made on or after 5 December 2005.
With effect from 6 December 2006, the anti-avoidance provisions in TCGA92/S8 were repealed and replaced by new legislation in TCGA92/S16A.
This is because the Targeted Anti-Avoidance rule relating to the creation of artificiallosses was extended to encompass Capital Gains Tax as well as Corporation Tax on Chargeable Gains. »Ê¹ÚÌåÓýappre is no change to the effect of the legislation on companies.