The following Tax guidance note Produced in partnership with Arun Birla and Hannah Gray of Paul Hastings (Europe) LLP and Sara Stewart of Vinson & Elkins RLLP provides comprehensive and up to date legal information covering:
FORTHCOMING CHANGE relating to a corporate capital loss restriction: Finance Bill 2019–20 will introduce a corporate capital loss restriction (CCLR), limiting companies’ use of carried-forward capital losses to 50% of their capital gains arising in an accounting period. Companies will have an allowance permitting them unrestricted use of up to £5m of capital or income losses per year. The CCLR will also apply to pre-entry capital losses in the limited situations in which these losses may be set off against capital gains. The CCLR will be incorporated within the existing rules imposing a corporate income loss restriction (see Practice Note: Corporation tax loss relief for carried-forward losses) and will apply to gains accruing on or after 1 April 2020, with anti-forestalling measures applying since 29 October 2018. For more information, see News Analysis: Budget 2018—corporate capital loss restriction.
This Practice Note considers the UK tax aspects of the establishment of a joint venture operated through a partnership. It is assumed for the purposes of this Practice Note that:
the joint venture parties are UK tax resident corporate entities
the joint venture partnership vehicle is also UK tax resident, and
the venture’s operations are carried out in the UK
For information on:
operating and terminating a joint venture partnership, see Practice Note: Tax implications of operating and terminating a joint venture partnership, and
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