The following Private Client guidance note provides comprehensive and up to date legal information covering:
This Practice Note considers the particular capital loss election that can be made by non-domiciled individuals who claim the remittance basis. For an introduction to the remittance basis, see Practice Notes: UK resident non-domiciliaries—tax planning and The remittance basis—summary.
An individual's capital losses are usually set against the individual's capital gains that arise in the same year as the loss, reducing the total taxable gains for that year. Losses not used in this fashion are normally carried forward to be set against the next available gains. See Practice Note: CGT—utilising capital losses.
However, in the absence of an election, there is no such relief for the foreign capital losses of a non-domiciled individual who has accessed the remittance basis, as it is not possible to remit a loss.
From 2008/09 onwards, a non-domiciled individual who claims the remittance basis under section 809B of the Income Tax Act 2007 can make a one-off foreign capital loss election. The election must relate to the first tax year for which a remittance basis claim is made.
The deadline for the election is four years from the end of the relevant tax year. Therefore, individuals who claimed the remittance basis for 2008/9 (the first year in which the rules changed) had until 5 April 2013 to make the election.
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