(1)Subject to any exceptions provided by this Act, and without prejudice to sections 10 and 276, a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to him in a year of assessment during any part of which he is resident in the United Kingdom, or during which he is ordinarily resident in the United Kingdom.
(2)Capital gains tax shall be charged on the total amount of chargeable gains accruing to the person chargeable in the year of assessment, after deducting—
(a)any allowable losses accruing to that person in that year of assessment, and
(b)so far as they have not been allowed as a deduction from chargeable gains accruing in any previous year of assessment, any allowable losses accruing to that person in any previous year of assessment (not earlier than the year 1965-66).
(3)Except as provided by section 62, an allowable loss accruing in a year of assessment shall not be allowable as a deduction from chargeable gains accruing in any earlier year of assessment, and relief shall not be given under this Act more than once in respect of any loss or part of a loss, and shall not be given under this Act if and so far as relief has been or may be given in respect of it under the Income Tax Acts.
[F1(4)If chargeable gains are treated by virtue of section 87 or 89(2) as accruing to a person in a tax year (“the relevant deemed gains”)—
(a)subsection (2) has effect as if the relevant deemed gains had not accrued, and
(b)the amount on which the person is charged to capital gains tax for that year is the sum of—
(i)the amount given by subsection (2) as it has effect by virtue of paragraph (a), and
(ii)the amount of the relevant deemed gains.
(5)In subsection (4) the reference to section 87 or 89(2) is to that section read, where appropriate, with section 10A.]
[F2(7)Where in any year of assessment—
(a)there are amounts treated as accruing to a person by virtue of section F3... 86,
(b)two or more of those amounts, or elements of them—
(i)relate to different settlements, F4...
F4(ii). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c)losses are deductible from the amounts or elements mentioned in paragraph (b) above F5... but are not enough to exhaust them all,
the deduction applicable to each of the F6... amounts shall be the appropriate proportion of the aggregate of those losses.
The “appropriate proportion” is that given by dividing the F6... amount in question by the total of the F6... amounts.
F7(8). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ]
Textual Amendments
F1S. 2(4)(5) substituted for s. 2(4)-(6) (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 24(2)
F2S. 2(6)-(8) inserted (with effect in accordance with Sch. 11 paras. 7, 8 of the amending Act) by Finance Act 2002 (c. 23), Sch. 11 para. 2(4)
F3Words in s. 2(7)(a) omitted (with effect in accordance with Sch. 2 para. 22 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 2
F4S. 2(7)(b)(ii) and preceding word omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 24(3)(a)
F5Words in s. 2(7)(c) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 24(3)(b)
F6Words in s. 2(7) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 24(3)(c)
F7S. 2(8) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 24(4)
Modifications etc. (not altering text)
C1S. 2(1) applied (with effect in accordance with art. 1(2)(3), Sch. 1 of the amending S.I.) by The Offshore Funds (Tax) Regulations 2009 (S.I. 2009/3001), regs. 1(1), 22(1)(a)