Remittance basis - how to report loss?

Hi admin, I am a UK resident, non-domicile, and will apply remittance basis for 2022/23. I have foreign capital gains, foreign dividend and foreign interests. I will not remit any of these to the UK. I don't have any income or gain in the UK. I will report the unremitted income and gain in SA109, and I understand that I don't need to submit SA106 and SA108 provided that I don't remit any those foreign income and capital gains to the UK. However, I want to ask where should I report the capital loss? For example, I have capital gain of 10,000 and capital loss of 8,000 in 2022/23. Should I fill in the net-off amount (i.e. 10,000-8,000 = 2,000 ) in box 35 of SA109 as the nominated gain, and provide the detailed information in box 40? Many thanks! Msirl

Hi msirl
To confirm "yes".
Complete the form SA109 as the losses needed to be used against the gain in the same year even, if it means you lose out on the full anual exempt amount for the year.
Thank you. 


 

Thanks you! If for the current tax year 2022/23, the capital loss is greater than the capital gain. For instance, capital gain is 10,000, and capital loss is 15,000, then the net loss is 5,000. Can this 5,000 be carried forward to next year? Many thanks! Msirl

Can anyone answer my question? Many thanks!!!

Hi,
Yes it can.
Thank you.

Hi, I want to ask a follow up question. In my case, I am UK resident, non-domicile, and will apply remittance basis for 2022/23. 2022/23 is the first year that I am a UK resident. I have no UK income or gain, and I only have foreign capital gain, foreign dividend and interests. I have made some capital loss. I will not remit any foreign income or gain to the UK. In this situation, how can I elect foreign capital loss claim, for the purpose of carrying the capital loss to future tax years? Do I need to fill in SA108? If not, how can I elect the claim? Many thanks!!

Hi msirl,
You can send in details of the loss in a letter.
HMRC must be notified within 4 years of the tax year of the loss arising.
Contact details: 
Self Assessment: general enquiries
Thank you. 



 

Thank you for your reply. I want to confirm if my understanding is correct. 1. I don't need to fill in SA108 for the purpose of claiming foreign capital loss, right? 2. I need to fill in the net-off amount of capital gain & loss in box 35 of SA109 as the nominated gain, and provide the detailed information in box 40, right? 3. Filling SA109 already serves the purpose of your suggestion "You can send in details of the loss in a letter. HMRC must be notified within 4 years of the tax year of the loss arising.", right? And I don't need to write a separate letter, right? Appreciate your reply!

Hi msirl,
You are correct.
Thank you. 

Hi admin, As a UK resident non-domiciled individual planning to apply for the remittance basis for 2022/23, I arrived in the UK on 1 August 2022 and became a UK tax resident on that day. However, I will opt for split year assessment for the period 6 April 2022 to 31 July 2022. In September 2022, I sold several funds that I acquired in September and October 2021 and incurred a significant capital loss. This capital loss is greater than the aggregate foreign dividend, interest, and rental income that I generated in 2022/23. Question 1 Can I use this significant loss to offset all the other foreign income? If so, I would have a net foreign loss in 2022/23. Will it make any difference if I choose the arising basis instead of the remittance basis? If I choose the arising basis, can I carry forward this loss to tax year 2023/24? Since I had a full-time UK job receiving UK income starting in November 2022, can I use this foreign loss to offset the UK income that I need to pay? Question 2: I received income in my foreign account from working full-time in the UK from August to October 2022. If I choose not to remit this income into the UK when opting for the remittance basis, will it be considered UK income or foreign income? Many thanks! Best wishes, TCTY

Hi TC_UK,
A capital loss can only be set against capital gains and not against your interest/dividends or rental income so this would have no effect on this income you have received and as such you do not have a 'loss' to claim against your UK income.
As the 'sale' occured whilst you were resident in the UK, you would report this so that the details are on record to be carried forward to be used in later years against any other capital gains. For the scenario mentioned, it doesnt matter which basis you use as the same principles apply.  
For the foreign income this depends on what type of income and from what country.

Thank you.