Commentary

D2.505 Restriction on buying gains

Corporate tax
Corporate tax | Commentary

D2.505 Restriction on buying gains

Corporate tax | Commentary

Division D2.5     Pre-entry capital gains

Revised by
Rebecca Murray,

LLB, Barrister, ATT, CTA

Tax Manager, JP Morgan Chase Bank

For updates affecting this Division please see Part D0 Updates

Pre-entry capital gains—scope of regime

D2.505 Restriction on buying gains

In a similar vein as the restrictions on pre-entry losses (Division D2.4), there are restrictions preventing the use of pre-entry gains. The current gain buying provisions apply for accounting periods ending after 4 December 2005, as follows.

Where the following conditions are met, capital losses cannot be set against capital gains1:

  1.  

    (a)     there is a qualifying change of ownership of the relevant company (see D2.402);

  2.  

    (b)    

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial