TCGA92/S176(4) & (5)

The rules giving the method of making the adjustment are in TCGA92/S176(4) and TCGA92/S176(5). The allowable loss on the ultimate disposal is reduced to such extent as is just and reasonable having regard to the depreciatory transaction. The restriction is to be made on the footing that the allowable loss ought not to reflect any diminution in the value of the company's assets attributable to the depreciatory transaction.

The purpose of the rule is to allow the unadjusted capital gains loss to be reduced by an amount that reflects the commercial or economic effect of the depreciatory transaction.

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.