Clarification on Reporting Capital Gains Under Remittance Basis on SA108

I'm filing taxes under the remittance basis and need clarification on reporting capital gains when remitting funds from a mixed account. I understand that HMRC's LIFO rules apply at the yearly level, but I’m unclear about how they apply at the trade level within the year. For multiple disposals in the tax year, can I choose which disposals to report on SA108 as long as the total gain matches the remittance, or must I strictly follow LIFO for each trade within the year? Does HMRC allow flexibility in selecting trades within a year, or must I start with the last trade and work backward until the remitted amount is covered? (The issue with this approach is that there could be a gain in the last few trades for the year, while the net gain for the year might be less). Alternatively, can I use a proportional approach to report the proceeds, costs, and disposals on SA108? For example, if 20% of the yearly gains are remitted, can I report 20% of the proceeds, costs, yearly gains, and yearly losses on the SA108? Thank you!

Hi 

No.  The gains declared as unremitted can only be those that were not remitted.  Using alternatives is likely to cause confusion in later years.

Thank you

Thanks for the response. I need clarification on how to accurately fill out the SA108 form for the following remittance basis scenario: My foreign account contains: £100,000 clean capital £100,000 in capital gains from 10 separate disposals (£10,000 gain each) Total account balance: £200,000 I've made two transactions: 1) Extracted £50,000 for foreign use (Pro-rata applies here, hence: £25,000 capital, £25,000 gains extracted) 2) Remitted £50,000 to the UK (LIFO applies here, hence: £50,000 gains extracted) For the £50,000 gains remitted to the UK, how should I complete the following boxes on the SA108 form: Number of disposals,Proceeds,Costs,Yearly gains,Yearly losses Can I report 50% of the total yearly gain values in these boxes (equating to the £50,000 gains that I remitted)? For example: Number of disposals: 5 (50% of 10 yearly disposals) Proceeds: £50,000 (50% of 100,000 yearly proceeds) Yearly gains: £50,000 (50% of 100,000 yearly gains) Back tracing in LIFO for the exact disposals here will not work as it now contains partial amouts from the disposals due to the previous foreign use pro-rata extraction.

Hi Chris H,
We cannot comment on any form of calculation/example or scenario, whether fact or fiction.
We can only point you the direction of the guidance, so that you can review the guidance and to allow you to make an informed decision.
Please refer to:
Capital Gains Tax: what you pay it on, rates and allowances
Thank you