Taxation of Chargeable Gains Act 1992 Schedule 1 paragraph 3

Matching rules for relieving allowable losses

Schedule 1 paragraph 3 sets out how allowable losses are matched against chargeable gains for individuals on the remittance basis who have elected for foreign losses to be treated as allowable losses.

• Applies where the remittance basis is in effect for a tax year and the individual has made an election under section 16ZA to treat foreign losses as allowable losses
• Allowable losses must be matched to chargeable gains using the ordering rules in paragraph 4 of Schedule 1
• Where losses are matched to foreign gains that arose in the year but are deferred under the remittance basis, both the gains and the matched losses are reduced accordingly — effectively cancelling each other out
• Where losses are matched to any other chargeable gains, they are simply deducted from those gains in the normal way