CG73716 | Non-Resident Capital Gains Tax (NRCGT) - Disposals on or after 6 April 2015 to 5 April 2019: The Charge to Non-Resident CGT, and the exemptions: Charge to non-resident CGT, and use of losses

TCGA92/S14D* is the main charging provision in the new legislation. It lays down the key rule that a person is chargeable to CGT in respect of any chargeable NRCGT gain accruing to the person in the tax year on a non-resident CGT disposal. It charges NRCGT on the total chargeable NRCGT gains for a tax year after deducting allowable losses.

The losses that may be set against NRCGT comprise any allowable losses accruing to the person in the tax year in question on disposals of UK residential property interests, plus any allowable losses accruing to the person in previous tax years, so far as they have not already been allowed as a deduction from chargeable gains and are from disposals of UK residential property interests. No other deductions are allowed, except as permitted by TCGA92/S62(2AA) (carry-back of losses accruing in year of death).

TCGA92/S14E*makes clear that an NRCGT loss is not allowable as a deduction from chargeable gains that accrued in any previous tax year, except as permitted by TCGA92/S62(2) and 62(2AA). It provides that relief may not be given under TCGA92 more than once in respect of a loss or part of it; and may not be given at all, if and so far as relief has been or may be given in respect of it under provisions in the Tax Acts.

*These sections were re-written for disposals from 6 April 2019 see CG10150