Taxation of Chargeable Gains Act 1992 Schedule 1 paragraph 5

Definitions

Schedule 1 paragraph 5 provides the key definitions used throughout the schedule, covering what constitutes a foreign asset, when the remittance basis applies, and how remittances to the United Kingdom are determined.

• A "foreign asset" is any asset situated outside the United Kingdom.
• The "remittance basis" applies to an individual for a tax year where sections 809B, 809D or 809E of the Income Tax Act 2007 apply to that individual for the year in question.
• Whether and when amounts are "remitted to the United Kingdom" is determined by following the rules set out in Chapter A1 of Part 14 of the Income Tax Act 2007.
• These definitions are essential for applying the schedule's provisions to UK-resident non-domiciled individuals who are taxed on foreign gains only when those gains are brought into the UK.