Taxation of Chargeable Gains Act 1992 section 16ZD

Section 16ZC: supplementary

Section 16ZD provides supplementary rules about how allowable losses are treated when deducted under the special computation rules for remittance basis individuals who have made a section 16ZA election.

• When section 16ZC applies to an individual for a tax year, any allowable loss deducted under step 1 of section 16ZC(2) is treated as having been used against chargeable gains in that year for the purposes of tracking available losses
• This deemed deduction counts for the purposes of section 2(2)(b), which governs how allowable losses are carried forward and set against future gains
• Where the loss deduction is made against a foreign chargeable gain (as defined in section 16ZC(3)(b)), the amount of that foreign gain is reduced by the amount of the loss deducted
• The effect is to ensure that both the loss relief and the reduction of the foreign gain are properly recorded, preventing double counting of losses or gains