Long-Term Residents – Capital Gains Tax Print

As mentioned in the section on Capital Losses, where a capital loss election has not been made, the non-domiciled individual is not entitled to relief in respect of overseas losses whether or not a claim for the remittance basis is made for a particular year.

As mentioned in the section on Capital Losses, where a capital loss election has not been

made, the non-domiciled individual is not entitled to relief in respect of overseas losses whether or not a claim for the remittance basis is made for a particular year.

From the time an individual becomes deemed domiciled in the UK under the more than 15 out of the past 20 year rule, the legislation preventing relief from overseas losses is

switched off for the time the individual remains deemed domiciled in the UK, so that overseas losses can be accessed during this period.

If the individual breaks his deemed domicile by becoming not-resident for 6 tax years, then on his return to the UK he will not be able to claim CGT relief on his overseas losses from the occasion of claiming the remittance basis for the first time following the return.

For those individuals who have made the CGT loss election, the election is switched off during the period whilst the individual is deemed domiciled in the UK in the same way as for those individuals who did not make the CGT election.

Where a non-domiciled individual returns to the UK after 5 April 2017, but within 5 years of departure from the UK, he may find that he is deemed domiciled in the UK if at the time of return he has been resident in the UK for more than 15 out of the past 20 years. As such a liability to CGT would arise on gains made on overseas assets sold during the period of non-residence. Under the pre 6 April 2017 rules he would have been able to claim the remittance basis to avoid the charge to CGT, but will not be able to do this if he is deemed domiciled when he returns here.

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