CG17913 - Taper relief: qualifying holding period: foreign assets

TCGA92/S12(1) provides that where a non-domiciled person disposes of a foreign asset, chargeable gains are taxed in the year (or years) in which the gains are remitted to the United Kingdom, see CG25310+. TCGA92/SCHA1/PARA16(4) ensures that in this situation taper relief is calculated by reference to the actual period of ownership of the asset. The same provision applies where TCGA92/S279(2) applies to defer liability where the taxpayer is unable to remit the proceeds to the United Kingdom because of the laws of the country where the gain accrued, or actions of its government, see CG78401+.

• EXAMPLE

A non-domiciled taxpayer acquired a foreign non-business asset in May 1998 and disposed of it in August 2002. The gain was remitted to the United Kingdom in January 2005. There will be 4 whole years in the qualifying holding period for taper relief in respect of the gain that accrued in January 2005, which runs from May 1998 to August 2002. The delay in remitting the gain does not affect the length of the qualifying holding period.