Avoidance using Losses
Legislation is to be introduced to prevent tax avoidance by individuals, trustees and personal representatives through the use of artificial capital losses. The existing corporation tax rule is to be extended to capital gains tax and income tax, so that a loss will not be an allowable loss if it arises as part of arrangements which have a tax advantage as a main purpose. The provisions will apply to losses on disposals on or after 6 December 2006.