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The Connected chargeable gains summary brings together gains and losses on disposals to connected persons from the Chargeable gains calculation schedule. Losses on disposals to a connected person are clogged — they can generally only be set against gains on disposals to the same connected person — so connected gains and losses are summarised separately from unconnected ones, and the template shows how connected losses (current-year and brought-forward) are used against connected gains.

Table of contents 

When should I use this template?

Use it after completing the Chargeable gains calculation schedule, where the company has made disposals to connected persons. Assets analysed there with a Counterparty of "Connected" flow into this summary automatically.

Two tables: gains and losses

The template shows a gains table and a losses table, each with one row per connected disposal of that kind.

Gains table columns

  • Description — the asset (pulled from the Chargeable gains calculation schedule, read-only).
  • Initial gain — the gain calculated in the Chargeable gains calculation schedule (read-only).
  • s.171A Election — an input to reallocate the gain to/from another group company under TCGA 1992 s171A (column appears once used). Rolls forward to nil.
  • CY capital loss offset — an input: the amount of the current-year connected capital losses set against this gain (entered as a negative). Rolls forward to nil.
  • Capital loss offset b/f — an input: the amount of brought-forward connected capital losses set against this gain (entered as a negative). Rolls forward to nil.
  • Other — an input for any further adjustment.
  • Final gain — calculated: Initial gain + s.171A + CY capital loss offset + Capital loss offset b/f + Other.

Losses table columns

  • Description, Initial loss (read-only).
  • s.171A Election — input (reallocation).
  • CY capital loss utilisation — an input: the current-year loss being utilised (i.e. matched against connected gains).
  • Other — input.
  • Final loss — calculated.

Reconciliation between the two tables: the total CY capital loss offset shown against the gains must equal the total CY capital loss utilisation shown against the losses (what is offset against gains has to come from losses utilised). If they do not net to zero, Silverfin shows an unreconciled indicator giving both totals and the difference. Sign checks also warn if a value has the wrong sign for its column.

The summary table

Current period

  • Connected chargeable gains — the connected gains before loss relief.
  • Connected capital losses offset — the current-year connected capital losses set against those gains.
  • Unconnected capital losses offset — an input: unconnected capital losses used against connected gains this period. (This figure links back to the Unconnected chargeable gains summary.)

Brought forward

  • B/f Connected capital losses offset — brought-forward connected capital losses used against the gains.
  • B/f Pre-entry unconnected capital losses offset — an input: brought-forward pre-entry unconnected losses used against connected gains.
  • B/f Unrestricted unconnected capital losses offset — an input: brought-forward unrestricted unconnected losses used against connected gains.
  • Net connected chargeable gains — calculated: the connected gains less all the losses offset. It cannot be negative (a warning shows if it is).

The three "unconnected … offset" inputs here are what feed the "Offset against connected gains" column in the Unconnected chargeable gains summary, so the two schedules stay consistent.

The connected capital losses memorandum

A memorandum table tracks the connected capital losses in a single Capital losses row:

  • Balance b/f — opening balance (input, or rolled forward).
  • Created in period — the connected losses arising this period (calculated from the losses table).
  • Utilised in period — the brought-forward connected losses used this period (calculated from the b/f offset).
  • Other — input for any other movement.
  • Balance c/f — calculated closing balance, which rolls forward to next year's balance b/f.

(The table switches to landscape orientation when enough columns are shown.) Silverfin warns if the balance b/f or c/f is negative.

What flows through to the rest of Corporation Tax?

The net connected chargeable gains feed the chargeable gains figure in the tax computation and the CT600 (gains to box 210, losses to box 215, connected capital losses carried forward to box 825). The connected capital losses memorandum carries the balance forward, and the template links to the Unconnected chargeable gains summary through the shared "offset" figures.

Important limitation

As with the unconnected summary, the schedule does not automatically apply the CTA 2010 Part 7ZA restriction on carried-forward capital losses; enter any restriction manually.

Frequently asked questions

Why are connected gains and losses kept separate?

Losses on disposals to a connected person are clogged — they can only be set against gains on disposals to the same connected person — so they cannot be used freely like unconnected losses.

What is the difference between "CY capital loss offset" and "CY capital loss utilisation"?

On a gain, "CY capital loss offset" is the current-year loss set against that gain; on a loss, "CY capital loss utilisation" is that loss being used. The two totals must reconcile (net to zero).

How do connected and unconnected summaries interact?

The "Unconnected capital losses offset" and the b/f pre-entry/unrestricted offsets entered here reduce the connected gains, and the same figures appear as "Offset against connected gains" in the Unconnected chargeable gains summary.

Why is "Net connected chargeable gains" showing a warning?

It cannot be negative — the losses offset cannot exceed the connected gains. Reduce the offsets so the net is nil or positive.