Taxation of Chargeable Gains Act 1992 section 1G

Gains accruing to UK resident individuals in split years

Section 1G modifies the normal capital gains tax charging and loss relief rules where a UK resident individual has a split year, so that gains arising during the overseas part of the year receive limited CGT treatment.

• During the overseas part of a split year, only gains on certain specified categories of asset (such as UK situated assets or assets used in a UK trade through a branch or agency) are chargeable to CGT.
• Losses arising in the overseas part can only be set against overseas-part gains on those same specified asset categories, including assets that would fall into those categories but for a connection to the individual's UK branch or agency.
• Any overseas-part losses on those specified asset categories that remain unused after offset against overseas-part gains can be carried across and deducted from gains arising in the UK part of the same tax year.
• The effect is to broadly treat the individual as non-resident during the overseas part of the year for CGT purposes, while preserving relief for certain overseas-part losses against UK-part gains.