CTA09/S663, 664

Examples of carrying back a loss

Example 1

A company enters into three property derivative contracts in its 12-month accounting period ended 31 December 2005, and continues to hold them in the year ended 31 December 2006. CTA09/S641 gains and losses on these contracts are as follows (losses in brackets):

Y/e 31 December 2005 Y/e 31 December 2006
1 £700,000 (£150,000)
2 (£100,000) (£800,000)
3 £1,400,000 £200,000

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