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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Foreign currency: delayed remittances


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


  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


  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 CG78407 about dealing with claims under Section 279.

  • 1998-99 onwards

Where the charge on a gain is deferred because the proceeds cannot be remitted, it is the untapered gain that is deferred. When the gain is brought into charge when the bar on remittance is lifted, the taper period runs to the time of disposal of the asset and not the time when the gain becomes chargeable.