Taxation of Chargeable Gains Act 1992 Schedule D1 paragraph 5

Other effects of claim

Schedule D1 paragraph 5 directs attention to the wider consequences that follow from making a foreign gain claim, including the loss of the annual exempt amount, restrictions on allowable losses, and certain income tax effects.

• An individual who makes a foreign gain claim for a tax year loses their entitlement to the capital gains annual exempt amount for that year.
• Any qualifying foreign losses that arise in the same tax year as the claim are not treated as allowable losses and so cannot be set against other gains.
• There are also income tax consequences, set out in sections 845C to 845E of ITTOIA 2005, which apply when a foreign gain claim is made.
• The paragraph serves as a signpost to these related provisions rather than containing substantive rules itself.