Capital losses

Can losses be transferred and carried forward.

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Company Y is owned 100% by Company X.  Y ceases trading and sells its assets to unconnected 3rd party resulting in £10k capital loss.  Y will be struck off at companies house. If X and Y enter into section 171A TCGA election to transfer all the £10k loss to X and X has no gains in the year, is the loss carried forward and offset against future gains?  Can't find the answer. Can someone point me in the right direction.  Thanks. 

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By Portia Nina Levin
08th Aug 2017 13:36

Yes. RTFL, s 171A is an election to treat the disposal (or so much of it as has been elected) as having been made by company X, rather then company Y.

So, you just have to do whatever you would have done if company X really had made the disposal.

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