Corporation tax – Groups and chargeable gains (for Advanced Taxation - United Kingdom (ATX-UK) (P6)) – part 3: self-test

Test your understanding

(1). Which of the following would be a valid reason to transfer a chargeable gain from HO Ltd to LF Ltd?

LF Ltd has purchased a qualifying business asset such that the gain on the asset sold can be rolled over.
B  LF Ltd has capital losses brought forward.


(2)
. In what circumstances can a pre-entry capital loss be used?


(3)
. State whether the following statements are true or false.

A  The use of pre-entry capital losses is not restricted if no change is made to the nature or conduct of the trade of the company with the pre-entry losses.
It is not possible to transfer capital losses between group companies.


Answers