Section 41 | Restriction Of Losses By Reference To Capital Allowances And Renewals Allowances | Taxation Of Chargeable Gains Act 1992 C12

41 Restriction of losses by reference to capital allowances and renewals allowances

Taxation of Chargeable Gains Act 1992 (1992 c 12) | Legislation

41 Restriction of losses by reference to capital allowances and renewals allowances

(1) Section 39 shall not require the exclusion from the sums allowable as a deduction in the computation of the gain of any expenditure as being expenditure in respect of which a capital allowance or renewals allowance is made, but the amount of any losses accruing on the disposal of an asset shall be restricted by reference to capital allowances and renewals allowances as follows.

(2) In the computation of the amount of a loss accruing to the person making the disposal, there shall be excluded from the sums allowable as a deduction any expenditure to the extent to which any capital allowance or renewals allowance has been or may be made in respect of it.

(3) If the person making the disposal acquired the asset—

[(a) by a transfer by way of sale in relation to which an election under section 569 of the Capital Allowances Act was made, or

(b) by a transfer to which section 268 of that Act applies,]

(being enactments under which a transfer is treated for the purposes of capital allowances as being made at written down value), the preceding provisions of