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HELP: Capital Losses Surrender

Forums › ACCA Forums › ACCA ATX Advanced Taxation Forums › HELP: Capital Losses Surrender

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by fbawany.
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    Posts
  • February 20, 2018 at 1:47 am #438050
    ahcompany
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    Hello, I will really appreciate if someone can help me with the following query

    So, I was doing CACAO LTD Group question (Kaplan Exam Kit) in that

    1) 3 companies are 100% owned by an other company.
    2) One company (A) had a capital loss brought forward where as another company (B) had capital gain in the year.

    Now in the solution, examiner transferred capital gain of B to A to adjust its capital loss.

    Now my query is,
    1) cant we transfer capital loss of A to B to adjust it?
    2) Are brought forward capital losses transferred for relief in capital gain group?

    Would really appreciate this help as I am a self-study student.

    February 22, 2018 at 12:34 pm #438359
    fbawany
    Member
    • Topics: 20
    • Replies: 171
    • ☆☆

    You cannot transfer a b/fwd capital loss, so thats why you would transfer the current year capital gain so you can offset against that.

    I hope that helps.

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    Posts
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