Taxation of Chargeable Gains Act 1992 section 12

Non-UK domiciled individuals to whom remittance basis applies

Section 12 deals with how chargeable gains on foreign assets are taxed for individuals who are UK resident but not UK domiciled, where the remittance basis of taxation applies.

• Individuals who are UK resident but not domiciled in the UK may be taxed on the remittance basis for their foreign chargeable gains, meaning they are only taxed on gains from overseas assets when those gains are brought (remitted) to the UK.
• Under the remittance basis, chargeable gains arising on the disposal of assets situated outside the UK are not subject to capital gains tax unless and until the proceeds or benefits derived from those gains are remitted to the UK.
• The remittance basis is not automatic; it must be claimed or may apply by default in certain circumstances, and its availability is subject to conditions set out in the Income Tax Act 2007.
• Following amendments introduced by the Finance Act 2019, the rules were updated to reflect changes in the treatment of deemed domicile, which can affect whether an individual remains eligible for the remittance basis.

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