Taxation of Chargeable Gains Act 1992

[F1 16ZA Losses: non-UK domiciled individuals U.K.

[F2 (1) An individual may make an election under this section in respect of—

(a) the first tax year in which section 809B of ITA 2007 (claim for remittance basis) applies to the individual, or

(b) the first tax year in which that section applies to the individual following a period in which the individual has been domiciled in the United Kingdom.

(2) Where an individual makes an election under this section in respect of a tax year, the election has effect in relation to the individual for—

(a) that tax year, and

(b) all subsequent tax years.

(2A) But if after making an election under this section an individual becomes domiciled in the United Kingdom at any time in a tax year, the election does not have effect in relation to the individual for—

(a) that tax year, or

(b) any subsequent tax year.

(2B) Where an election made by an individual under this section in respect of a tax year ceases to have effect by virtue of subsection (2A), the fact that it has ceased to have effect does not prevent the individual from making another election under this section in respect of a later tax year.

(3) If an individual does not make an election under this section in respect of a year referred to in subsection (1)(a) or (b), foreign losses accruing to the individual in—

(a) that tax year, or

(b) any subsequent tax year except one in which the individual is domiciled in the United Kingdom,

are not allowable losses.]

(4) Sections 42 and 43 of the Management Act (procedure and time limit for making claims), except section 42(1A) of that Act, apply in relation to an election under this section as they apply in relation to a claim for relief.

(5) An election under this section is irrevocable.

(6) In this section “foreign loss” means a loss accruing from the disposal of an asset situated outside the United Kingdom.

[F3 (7) Section 835BA of ITA 2007 (deemed domicile) applies for the purposes of this section.]]

Textual Amendments

F1 Ss. 16ZA-16ZD inserted (with effect in accordance with Sch. 7 para. 81 of the amending Act) by Finance Act 2008 (c. 9), Sch. 7 para. 62

F2 S. 16ZA(1)-(3) substituted (with effect in accordance with Sch. 8 para. 3(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 3(2)

F3 S. 16ZA(7) inserted (with effect in accordance with Sch. 8 para. 3(4) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 8 para. 3(3)