What did section 252A of the Taxation of Chargeable Gains Act 1992 deal with?

Section 252A contained specific rules for the capital gains tax treatment of foreign currency held in bank accounts by individuals taxed on the remittance basis. It governed how gains or losses on foreign currency disposals were calculated for non-domiciled UK residents who elected the remittance basis of taxation.

When was section 252A removed from the legislation and by which Act?

Section 252A was removed from the Taxation of Chargeable Gains Act 1992 by section 35(5) of the Finance Act 2012. The removal took effect for any disposals of foreign currency occurring on or after 6 April 2012, meaning it ceased to apply from the start of the 2012–13 tax year onwards.

What happens to foreign currency bank account disposals after section 252A was repealed?

Following the repeal of section 252A, disposals of foreign currency from bank accounts occurring on or after 6 April 2012 are dealt with under the general capital gains tax rules rather than any special provision. The specific remittance basis treatment formerly contained in this section no longer applies to such transactions.

Did section 252A still apply to disposals made before 6 April 2012?

Yes, any disposals of foreign currency from bank accounts that took place before 6 April 2012 would still have been governed by the original provisions of section 252A. The repeal only applied prospectively, so earlier transactions remained subject to the rules as they existed at the time of disposal.

Taxation of Chargeable Gains Act 1992 section 252A

Foreign currency bank accounts and the remittance basis

Section 252A previously provided rules for the treatment of foreign currency bank accounts held by individuals taxed on the remittance basis, but has been removed from the legislation.

Section 252A dealt with the capital gains tax treatment of foreign currency held in bank accounts by individuals who were taxed on the remittance basis.
The section was removed from the Taxation of Chargeable Gains Act 1992 by the Finance Act 2012.
The removal took effect for any disposals of foreign currency occurring on or after 6 April 2012.
Any disposals that occurred before 6 April 2012 would still have been governed by the original rules under this section.

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