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HMRC internal manual

Capital Gains Manual

Deferred consideration: unascertainable: election for treatment of loss - temporary non-residents


Where an individual leaves the UK for a limited period TCGA92/10A may have effect to provide that he is chargeable to CGT in the year of assessment in which he returns to the UK, as though chargeable gains and losses which accrued to him during those tax years when he was away were gains and losses accruing in the year of his return, see CG25100+.

For the purposes of the relief under TCGA92/S279A the treatment provided by TCGA92/S10A does not affect the question as to whether a chargeable gain or loss is one which accrues on a particular disposal or the time at which, or the tax year in which, any particular disposal was made. However the tax year in which the gain or loss is treated as accruing by virtue of TCGA92/S10A(2) is not altered by this provision, and a loss which is treated as accruing in the tax year of the individual’s return to the UK is not prevented from being an allowable loss.

Consequently in any case where-

  • a loss accrues to an individual when he disposes of a right to which TCGA92/S279A applies during a tax year throughout which he is neither resident nor ordinarily resident* in the UK,
  • TCGA92/S10A treats the loss as accruing to him in the tax year of his return (or period of return) to the UK, (see CG26100+ and CG26500+ for detailed guidance on the temporary non-residence provisions) and
  • he gives a notice to an HMRC officer (in accordance with TCGA92/S16(2A)) quantifying the loss,

the loss is regarded, for the purposes of TCGA92/S279A, as an allowable loss accruing to the individual on the disposal by him of the right, and accruing to him in the tax year of his return (or period of return) to the UK.

*For 2013/14 and subsequent years ordinary residence does not need to be considered.