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Restrictions on allowable losses.
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59.— (1) The Principal Act is amended by inserting the following after section 546:
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“546A.— (1) In this section—
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‘arrangements’ includes any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable);
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‘tax advantage’ means—
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(a) relief or increased relief from tax,
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(b) repayment or increased repayment of tax,
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(c) the avoidance or reduction of a charge to tax or an assessment to tax, or
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(d) the avoidance of a possible assessment to tax;
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‘ tax ’ means capital gains tax or corporation tax on chargeable gains.
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(2) For the purposes of the Capital Gains Tax Acts, a loss shall not be an allowable loss if—
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(a) it accrues to the person directly or indirectly in consequence of, or otherwise in connection with, any arrangements, and
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(b) the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage.
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(3) For the purposes of subsection (2), it shall not be relevant—
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(a) whether or not the loss accrues at a time when there are no chargeable gains from which it could otherwise have been deducted, or
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(b) whether or not the tax advantage is secured for the person to whom the loss accrues or for any other person.”.
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(2) This section applies to disposals made on or after 4 February 2010.
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