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CG78401 | Foreign currency: delayed remittances

From HM Revenue & Customs · Capital Gains Manual

TCGA92/S279 provides that, where a gain arises on the disposal of an asset situated outside the United Kingdom and the following conditions apply in respect of the whole or any part of the gain:

  1. the person making the disposal was unable to transfer the gain to the United Kingdom

and

  1. that person's inability was due to the laws of the territory where the asset was situated at the time of disposal, or to the executive action of its Government or to the impossibility of obtaining foreign currency in that territory

and

  1. the inability was not due to any want of reasonable endeavours on that person's part,

the person charged or chargeable may claim that the gain (or part of it) should not be assessed in the year in which the disposal occurs. Certain payments may be made by the Export Credits Guarantee Department under arrangements for insuring overseas investments. If such a payment is made in respect of any gains, then those gains (to the extent of the payment) are to be regarded as not covered by TCGA92/S279, and are therefore assessable. See CG78403 about dealing with claims under Section 279.