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In 75% capital gains group, brought frwrd capital lossese cannot be transfered, however if a membr transfer its capital gain to another member, can the recieving member now offset its brough forward capital losses against the recived capital gain?
yes any part of a current period gain or loss made by one company in the gains group may be deemed to have been made by any other gains group member and a usual circumstance for that is where one company has a current period gain whilst another gains group member has a b/f capital loss
Actually my question here is about brought forward capital losses,
As a rule brought forward capital losses cannot b offset against current period gains in a group.Is there any situation where broght frwrd capital losses can b offset against current period gains in a group or is it always forbidden?
Yes – look at the answer provided – if a company in the gains group has a b/f capital loss then another gains group member with a current period gain may deem that gain to have been made by the company with the b/f capital loss thus allowing the set off. You cannot move the b/f capital loss but that is the beauty of this election you can move the gain to the loss not just a loss to the gain!
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