Taxation of Chargeable Gains Act 1992 Schedule 1 paragraph 4

Rules for matching losses to chargeable gains

Schedule 1 paragraph 4 sets out the order in which an individual's allowable losses must be set against their chargeable gains where the special matching rules in paragraph 3 apply for a tax year.

• Losses must first be set against gains on foreign asset disposals that have been remitted to the UK in the same tax year.
• Losses are next matched against gains on foreign asset disposals that have not been remitted to the UK in the tax year.
• Any remaining losses are then set against all other chargeable gains arising in the tax year.
• Where losses at the second step are insufficient to cover all unremitted foreign gains, they are allocated on a last-in-first-out basis, starting with gains arising on the most recent day and working backwards.