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The Unconnected chargeable gains summary brings together the gains and losses on disposals to unconnected parties from the Chargeable gains calculation schedule, applies any group reallocation and adjustments, works out how capital losses are used, and produces the net unconnected chargeable gains for the period. It also maintains a memorandum of capital losses, split between pre-entry and unrestricted losses.

Table of contents 

When should I use this template?

Use it after completing the Chargeable gains calculation schedule. Assets analysed there with a Counterparty of "Unconnected" flow into this summary automatically.

What does the gains table show?

Each unconnected disposal appears as a row:

  • Description — the asset, pulled from the Chargeable gains calculation schedule (read-only here).
  • Initial gain / (loss) — the net gain or loss calculated in the Chargeable gains calculation schedule (read-only).
  • s.171A election — an input to reallocate the gain or loss to or from another group company under TCGA 1992 s171A (the column appears once any value is entered). Rolls forward to nil.
  • Other — an input for any further adjustment to the gain/loss (column appears once used). Rolls forward to nil.
  • Final gain / (loss) — calculated: Initial gain/(loss) + s.171A election + Other.

A total row sums the columns. Each positive final gain adds to the chargeable gains for the period; each negative final result adds to the current-period capital losses.

What does the summary table show?

Current period

  • Unconnected chargeable gains total — the sum of the positive final gains.
  • Unconnected capital losses offset — the current-period unconnected capital losses set against those gains (calculated automatically, limited to the amount of the gains — losses cannot reduce the total below nil).

Brought forward

  • Pre-entry capital losses offset b/f — an input: brought-forward pre-entry capital losses used against this period's unconnected gains. It cannot be positive, and cannot exceed the pre-entry balance brought forward. Rolls forward to nil.
  • Unrestricted capital losses offset b/f — an input: brought-forward unrestricted capital losses used against this period's unconnected gains. It cannot be positive, and cannot exceed the unrestricted balance brought forward. Rolls forward to nil.
  • Net unconnected chargeable gains — calculated: the chargeable gains less the current-period and brought-forward losses offset. This is the net taxable figure and cannot be negative (a warning shows if it is).

How does the capital losses memorandum work?

Where there are capital losses to track, a memorandum table shows two rows — Pre-entry capital losses and Unrestricted — because pre-entry capital losses (broadly, losses realised before a company joined the group — TCGA 1992 Schedule 7A) are restricted in how they can be used, whereas unrestricted losses are ordinary capital losses. The columns are:

  • Balance b/f — the opening balance of that loss type (input, or rolled forward from last year).
  • Offset against unconnected gains — the brought-forward amount used against this period's unconnected gains (carried from the summary inputs above). It cannot exceed the balance b/f.
  • Created in period — for Pre-entry, an input for the portion of the current period's losses that are pre-entry (it cannot exceed the total final gain/(loss)); for Unrestricted, calculated as the remaining current-period losses.
  • Offset against connected gains — the amount of these losses used against connected gains, pulled from the Connected chargeable gains summary. It cannot exceed the sub-total (b/f + offset against unconnected gains + created in period).
  • Other — an input for any other movement.
  • Balance c/f — the calculated closing balance, which rolls forward to next year's balance b/f.

Silverfin warns if a balance b/f, created-in-period or balance c/f is negative, or if an offset exceeds the available balance.

What flows through to the rest of Corporation Tax?

The net unconnected chargeable gains feed the chargeable gains figure in the tax computation and the CT600 (net gains to box 210, net losses to box 215, capital losses carried forward to box 825). The capital losses memorandum carries the pre-entry and unrestricted balances forward, and links to the Connected chargeable gains summary through the "offset against connected gains" figures.

Which restriction is not applied automatically?

The schedule does not automatically apply the restriction on obtaining certain deductions in CTA 2010 Part 7ZA (broadly the £5m deductions allowance plus 50% restriction on carried-forward capital losses). Where a restriction is needed, enter it manually.

Frequently asked questions

Where do the gains come from?

From the Chargeable gains calculation schedule — assets with a Counterparty of "Unconnected".

What is the difference between pre-entry and unrestricted capital losses?

Pre-entry capital losses (TCGA 1992 Schedule 7A) are losses that accrued before the company joined a group and are restricted in use; unrestricted losses are ordinary capital losses. The memorandum tracks each separately.

Why is my "Net unconnected chargeable gains" showing a warning?

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

Why can't the offsets be positive?

They represent losses being used, so they are entered as negative amounts; a positive figure triggers a warning.