Taxation of Chargeable Gains Act 1992 section 279

Foreign assets: delayed remittances

Section 279 provides relief where a chargeable gain arises on the disposal of a foreign asset but the taxpayer is genuinely unable to bring the proceeds back to the United Kingdom due to circumstances beyond their control.

• Where gains from disposing of overseas assets cannot be transferred to the UK due to local laws, government action, or the impossibility of obtaining foreign currency, the taxpayer may claim to defer the tax charge to a later year.
• The qualifying gains are removed from the tax assessment for the year the disposal took place, but are then charged to capital gains tax in the year when the conditions preventing the transfer cease to apply.
• The claim must be made within four years of the end of the tax year (for individuals) or accounting period (for companies) in which the gain accrued, and the taxpayer must show they made reasonable efforts to transfer the funds.
• If the Export Credits Guarantee Department makes a payment in respect of gains that cannot be transferred, those gains are treated as no longer qualifying for this relief, to the extent of the payment received.