Section 689 Restriction of relief for losses on certain disposals

subscription or 30 day access with no obligation

(1) Notwithstanding any provision of the Capital Gains Tax Acts or of the Corporation Tax Acts relating to the deduction of allowable losses for the purposes of capital gains tax or of corporation tax on chargeable gains―

(a) an allowable loss accruing on a disposal of an asset other than a petroleum-related asset shall not be deducted from the amount of a chargeable gain accruing on a disposal of a petroleum-related asset, and

(b) an allowable loss accruing on a disposal of a petroleum-related asset shall not be deducted from the amount of a chargeable gain accruing on a disposal of an asset other than a petroleum-related asset.

What are the capital losses offset rules in relation to a petroleum trade?

(1) You may only set off an allowable loss on a petroleum trade asset against a gain on the disposal of a petroleum trade asset. In other words, petroleum trade capital losses are "ring-fenced" against the petroleum trade gains and may not be set off...

to read the full commentary

(2) Subsection (11) of section 597 shall apply as respects the application of that section to a disposal of assets which have been used by the person disposing of them for the purposes of a petroleum trade as if each reference in that subsection to a "trade" or "trades" were respectively a reference to a "petroleum trade" or "petroleum trades" within the meaning of this Chapter.

Does rollover relief apply to petroleum trade assets?

(2) Where you carry on a petroleum trade at two or more different locations, you may be treated as having a single trade for the purposes of rollover relief....

to read the full commentary