Taxes Consolidation Act 1997 section 689

Restriction of relief for losses on certain disposals

Section 689 provides for a two-way ring-fence of chargeable gains and allowable losses on disposals of petroleum-related assets, and extends this ring-fencing to rollover relief under section 597.

• Allowable losses on non-petroleum assets cannot be set against chargeable gains on petroleum-related assets.
• Allowable losses on petroleum-related assets cannot be set against chargeable gains on non-petroleum assets.
• The two-way ring-fence effectively isolates petroleum trade gains and losses from all other capital gains and losses.
• Rollover relief under section 597 is similarly ring-fenced, so that disposal proceeds from petroleum trade assets can only be rolled over into replacement assets used in another petroleum trade.