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HMRC internal manual

Capital Gains Manual

Effects of residence/domicile: domicile: section 12 TCGA 1992


If an individual is domiciled or deemed domiciled* in the UK he or she is liable on gains arising from assets situated anywhere in the world. However, if the individual is not domiciled and not deemed domiciled* in the UK, he or she is still liable on gains arising from assets situated in the UK but may (if remittance basis is due) not be liable on gains arising from assets located outside the UK except to the extent that those gains are remitted to the UK. See CG25300-CG25431. ‘Domiciled in the United Kingdom’ means domiciled either in England, Scotland, Wales or Northern Ireland.

With effect from 2008-09, an individual’s being domiciled outside the UK does not automatically mean that the remittance basis applies to gains arising to them from assets outside the UK. A claim may be necessary in order for remittance basis to apply. For guidance on claims, see the Residence, Domicile & Remittance Basis Manual.

TCGA92/S12** refers to foreign chargeable gains being remitted to the UK, and will apply when an individual is taxed on the remittance basis. The concepts underlying the remittance of gains, such as money or property being brought to, or enjoyed in, the UK, are not readily applicable to losses and section 12** does not apply to foreign losses (i.e. losses which accrue on the disposal of foreign assets). For guidance on relief in respect of foreign losses in cases where the remittance basis applies, see CG25330+.

Where an individual is taxed on the arising basis, rather than the remittance basis, losses on assets situated outside the UK are allowable losses to the same extent that gains would be chargeable gains, see CG10921. This is subject to TCGA92/S16A which disallows losses resulting from arrangements intended to secure a tax advantage.

*The deemed domicile rules can apply from 6 April 2017 and guidance on deemed domicile is within the Residence, Domicile and Remittance Basis Manual.

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