RDRM32060 - Remittance Basis: Accessing the remittance basis: Claiming the remittance basis up to 5 April 2025: Claiming the remittance basis - foreign chargeable gains loss election
Source: gov.uk (2025-07-31)


From 6 April 2025 it is not possible to use the remittance basis of taxation, however, any foreign income or gains that have arisen to a former remittance basis user prior to this date will continue to be taxed at the usual tax rates if they are remitted to the UK on or after 6 April 2025, subject to any amounts designated under the temporary repatriation facility (TRF) – see RDRM71000 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm71000).

Unused losses at 6 April 2025 following an earlier claim under section 16ZA TCGA 1992 can still be offset against gains that arise on or after 6 April 2025 - see RDRM31170 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm31170)and CG25330 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg25330)onwards for further information.

The guidance in this section only applies to tax years up to and including the 2024-25 tax year and remains for reference purposes only.

Foreign chargeable gains

Foreign chargeable gains are gains accruing from the disposal of an asset which is situated outside the United Kingdom in a year in which the remittance basis applies - refer to TCGA1992/s12(4).

Remittance basis users are taxable on gains from foreign assets only to the extent that they remit (bring) the proceeds to the UK.

If a claim for the remittance basis is made under s809B, the individual will lose their Annual Exempt Amount for capital gains purposes as well as their personal allowances (refer to RDRM32040 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm32040) Loss of Personal Allowances/Annual Exempt Amount).

Note: The examples in this and later Chapters are designed simply to illustrate the basic principles. The Chapters use the phrase remittance of ‘foreign chargeable gains’, or refer to such gains being ‘remitted’. This phrase is used throughout as convenient shorthand. Foreign chargeable gains will usually be part of the proceeds from the sale of an asset, which will likely be a mixed fund. You will need to refer to this Chapter together with other Chapters in order to identify and quantify remittances of gains out of proceeds.

Foreign losses

For years up to 5 April 2017 (2016-2017)

With the exception of individuals who may use the remittance basis under ITA07/s809D or s809E without claim (refer to RDRM32100 (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis/rdrm32100) Exceptions to the claim requirements), non-domiciled remittance basis users are required to make an election under TCGA1992 s16ZA if they want their overseas losses to be offset against foreign chargeable gains.

The election should be made for the first year for which the remittance basis is claimed, irrespective of whether the individual has any foreign chargeable gains or overseas losses in that year. The election will usually be expected to be made within the white space in the Capital Gains supplementary pages of the same SA Return as the first remittance basis claim is made. The election is irrevocable.

The usual time limits for claims/elections at TMA70/s42 and 43 apply. Refer to the Self Assessment Claims Manual (SACM) for further information about claim time limits.

If an election has been made then, in a tax year in which the remittance basis applies (and the individual is not domiciled in the United Kingdom), special rules apply to determine how gains are to be relieved by losses. In summary, the allowable losses under TCGA92/S2 are matched:
- Firstly, against foreign chargeable gains accruing in the tax year to the extent that they are remitted to the United Kingdom in that year
- Secondly, against foreign chargeable gains accruing in that year to the extent that they are not so remitted and
- Thirdly, against chargeable gains accruing in that year other than foreign chargeable gains.
You should refer to the Capital Gains Manual (CG25330+) for full details.

If the individual does not make an election, relief cannot be allowed in respect of any foreign losses accruing to them in that year, or any future tax year in which they remain not domiciled in the United Kingdom (whether or not they claim or use the remittance basis in those later years).

For years from 6 April 2017 (2017-2018)

From 6 April 2017 losses arising on the disposal of a foreign situs asset will be allowable losses if that individual is deemed domiciled in the UK for the year.

If a previously non-UK domiciled individual had made a s16ZA election but those losses had not yet been utilized, they will be available to offset against gains when that individual becomes deemed domiciled in the UK.

From 6 April 2017 the provisions for making an election under s16ZA TCGA1992 have changed. Individuals can still make an election if:
- It is the first year they are claiming the remittance basis of assessment under s809B ITA 2007
- It is the first year they are claiming the remittance basis under s809B and they were previously deemed domiciled in the UK by virtue of being UK resident for at least 15 of the previous 20 tax years, but had broken this link by being non-UK resident for at least 6 complete UK tax years
If an election is made it will have effect on that individual for that tax year and all subsequent tax years.

If an individual subsequently becomes deemed domiciled after making such an election the election ceases to have effect in the year they become deemed domiciled and all successive tax years.

If an individual does not make an election in the first year a claim under s809B is made; including those individuals returning to the UK who have broken their deemed domiciled status, any foreign losses arising will not be allowable losses.