SCHEDULES
F1SCHEDULE 1UK resident individuals not domiciled in UK
Rules for matching losses to chargeable gains
4
1
This paragraph explains how, for the purposes of paragraph 3, allowable losses are matched to chargeable gains in the case of an individual to whom that paragraph applies for a tax year.
2
The losses are matched to the gains in the following order—
first, gains actually accruing to the individual in the tax year on the disposal of foreign assets so far as they are remitted to the United Kingdom in the tax year;
second, gains actually accruing to the individual in the tax year on the disposal of foreign assets so far as they are not remitted to the United Kingdom in the tax year;
third, any other gains accruing to the individual in the tax year.
3
If the tax year is a split year, the matching under the first and second steps is to be done by reference to the extent to which the gains are, or are not, remitted in the UK part of the year.
4
If there are losses to be matched to gains under the second step but the losses are insufficient to eliminate the gains—
a
the losses are to be matched against gains accruing on the most recent day first (and then the next most recent day and so on until none of the losses remain), and
b
if losses cannot be matched fully against gains accruing on a particular day, the appropriate portion of the losses is matched against each of the gains.
5
“The appropriate portion” means the amount of each gain accruing on the day divided by the total amount of all of the gains accruing on the day.
Sch. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 13