Taxation of Chargeable Gains Act 1992 section 16ZB

Individual who has made election under section 16ZA: foreign chargeable gains remitted in tax year after tax year in which accrue

Section 16ZB restricts how allowable foreign losses (where an election has been made under section 16ZA) can be set against foreign chargeable gains that are taxed on the remittance basis in a later tax year than the year they arose.

• Where an individual has elected for foreign losses to be allowable under section 16ZA, special rules apply when foreign chargeable gains are remitted to the UK in a tax year later than the year they arose.
• A loss cannot be "carried back" and set against a foreign chargeable gain from an earlier year, even if that gain is only taxed in the year of loss because the remittance basis applies.
• For the applicable tax year (the year in which the remitted gain is taxed), the individual is charged to CGT on the sum of two amounts: the adjusted taxable amount plus the amount of the relevant gains.
• The adjusted taxable amount is essentially the individual's chargeable gains for the applicable tax year recalculated to exclude any losses that arose after the foreign chargeable gains being remitted.