Foreign capital gains and losses

Produced by Tolley
Foreign capital gains and losses

The following Personal Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Foreign capital gains and losses
  • Resident and domiciled or deemed domiciled in the UK
  • Not domiciled or deemed domiciled in the UK
  • UK assets
  • Foreign assets
  • Not resident in the UK
  • Foreign capital losses
  • Reporting foreign capital gains and losses

This note discusses the capital gains tax (CGT) position of the following categories of people:

  1. resident and domiciled or deemed domiciled in the UK

  2. resident but not domiciled or deemed domiciled

  3. not resident in the UK

The note does not cover the position of temporary non-residents, who are those people who are no longer resident but remain within the scope of the UK CGT regime. See the Temporary non-residence and UK capital gains tax liability of temporary non-residents guidance notes.

Guidance on reporting foreign capital gains and losses is given at the end of this note.

Resident and domiciled or deemed domiciled in the UK

An individual who is UK resident and domiciled or deemed domiciled is taxed on their worldwide capital gains arising in the tax year. Any capital losses can be set against their gains, see the Use of capital losses guidance note.

Residence status is determined in the same way for CGT and income tax, and is discussed in the Residence ― overview guidance note. For commentary on domicile status, see the Domicile and Deemed domicile for income tax and capital gains tax (2017/18 onwards) guidance notes.

In other words, for the person who is UK resident and domiciled or deemed domiciled, it does not matter whether the gains are from foreign assets or UK assets. The only difference between UK and foreign gains is that, if they have suffered foreign tax on the capital gain, they can normally claim double tax relief. See the Foreign tax relief guidance note and HMRC Helpsheet HS261.

Not dom

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