Taxes Consolidation Act 1997 section 546A

Restrictions on allowable losses

Section 546A denies a capital loss where it arises from arrangements whose main purpose, or one of whose main purposes, is to secure a tax advantage.

• "Arrangements" is broadly defined and includes any agreement, understanding, scheme, transaction or series of transactions, whether or not legally enforceable.
• A "tax advantage" includes relief or increased relief from tax, repayment or increased repayment of tax, the avoidance or reduction of a charge to tax or an assessment, or the avoidance of a possible assessment to tax.
• It does not matter whether the loss accrues at a time when there are no chargeable gains available for offset, or whether the tax advantage is secured for the person suffering the loss or for someone else.
• The restriction does not apply where a genuine commercial transaction gives rise to a real commercial loss on a real commercial disposal.