Sir i also have a doubt related to capital gains group. lets say there are 2 companies, "first ltd" and "second ltd" in a capital gains group, first ltd makes a chargeable gains of 20000, and has current yr trading losses of 30000 and second company within the same group is willing to surrender its capital losses of 8000, then what will happen?
net chargeable gain is 12000 (20000-8000) and then deduct 12000of trading losses(of first company) from remaining gains or the first company cannot accept the capital loss as it has set off its 20000(10000 still remain) trading losses against its chargeable gains??
would much appreciate your help!!
Ask the Tutor ACCA TX-UK
capital gains group companies
If the election is made to treat the capital loss as a loss of First Ltd then that will create a net gain of 12,000. First Ltd can then decide whether to make a current period claim against the 12,000 or may choose instead to surrender any part of its loss to any other 75% group member in a group relief claim
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