What is the purpose of section 12ZH of the Taxes Management Act 1970?

Section 12ZH ensures that information and self-assessment figures from a non-resident capital gains tax (NRCGT) return are incorporated into the person's annual self-assessment return under section 8. This prevents duplication and double-counting of gains already reported through the standalone NRCGT return when completing the annual return.

How does an NRCGT return interact with an annual self-assessment return under section 8?

When a non-resident files an NRCGT return for a UK property disposal, section 12ZH requires those figures to be carried across into their annual self-assessment return. The person does not start from scratch — the NRCGT return forms the basis for relevant entries in the section 8 return, ensuring consistency and avoiding duplicate taxation.

How did Finance Act 2019 amend section 12ZH?

Finance Act 2019, Schedule 2, paragraph 25(3) amended section 12ZH as part of a broader overhaul extending the capital gains charge on UK property disposals to all non-residents, not just those disposing of residential property. Transitional provisions in Schedule 2, paragraph 32(2) govern disposals straddling the old and new regimes.

Can a non-resident be taxed twice on the same UK property gain under self-assessment?

No. Section 12ZH specifically prevents double-counting by requiring the annual self-assessment return to incorporate figures and tax already reported through the NRCGT return. Any tax paid through the NRCGT process is reflected in the annual return, and adjustments such as rate changes based on total income are reconciled accordingly.

Taxes Management Act 1970 section 12ZH

NRCGT returns and annual self-assessment: section 8

Section 12ZH deals with the interaction between non-resident capital gains tax (NRCGT) returns and the annual self-assessment return under section 8, explaining how amounts already reported through an NRCGT return feed into the wider self-assessment process.

Where a person has filed an NRCGT return for a disposal of UK property, the information and self-assessment from that return must be taken into account when completing their annual self-assessment return under section 8.
The annual self-assessment return must incorporate the figures from any NRCGT return, ensuring that gains already reported are not overlooked or double-counted.
This provision was amended by Finance Act 2019 as part of wider changes to the reporting framework for non-resident capital gains on UK property disposals.
The transitional rules in Schedule 2, paragraph 32(2) of Finance Act 2019 govern how the changes apply to disposals straddling the old and new regimes.

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