Chris H

Understood. Thank you for the guidance.

Hello, I'm seeking guidance on SA108 reporting under remittance basis: Foreign account consists of: £100,000 clean capital, £100,000 gains (10 disposals: 5 x £5,000, 5 x £15,000) End of tax year: 1) Extracted £50,000 for foreign use (pro-rata: £25,000 capital, £25,000 gains) 2) Remitted £60,000 to UK (LIFO, all gains) How to report £60,000 remitted gains on SA108 (Number of disposals, Proceeds, Costs, Gains)? Options: A) Proportional: 60% of yearly figures (6 disposals, £60,000 proceeds, £60,000 gains) B) Strict LIFO: 4 full disposals of £15,000 each (ignoring pro-rata foreign use extraction) C) Single disposal: Report as 1 disposal with £60,000 gains Does it matter which option is chosen as the reported gain is the same? Which method is preferred for SA108? 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.

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!

I'm currently filing my taxes under the remittance basis and need some clarification on how to report capital gains when remitting funds from a mixed account. I understand that HMRC's LIFO (Last-In, First-Out) rules apply at the yearly level, meaning I should first allocate the remittance to the most recent year’s income and gains. However, I’m unsure how to handle individual stock trades within the same tax year. Specifically: 1) If I made multiple disposals in a tax year, can I choose which disposals to report on my SA108 form as long as the total gain matches the amount remitted, or do I need to strictly follow LIFO at the individual trade level within that year? 2) Does HMRC allow flexibility in selecting trades within a single tax 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). Any guidance on how to proceed would be greatly appreciated. Thank you

I’m seeking clarification on how to correctly report capital gains on the SA108 form when dealing with mixed funds under the remittance basis, specifically after making a pro-rata withdrawal for foreign use. Example: 2021: £10,000 capital gains, £100 income. 2022: £20,000 capital gains, £100 income. I made two withdrawals from this account: Withdrawal 1: £5,000 for foreign use, distributed on a pro-rata basis. Withdrawal 2: £10,000 remitted to the UK, taken from the remaining funds (mostly 2022 capital gains due to LIFO rules). Given that Withdrawal 1 involved a pro-rata distribution, the remaining capital gains are a mix of partial disposals. However, for SA108 reporting, is it acceptable to backtrace and report full stock disposals until the remitted amount is covered (i.e., 396 stock disposals at £25 gain each), rather than attempting to allocate prorated portions of each stock disposal? This approach simplifies the reporting process yet still ensures the correct amount of capital gains tax is paid, but I want to confirm that it aligns with requirements.

I need clarification on the Personal Savings Allowance (PSA) when claiming the remittance basis as a non-domiciled individual. While I know that allowances like the Personal Allowance and the Annual Exempt Amount for capital gains are forfeited under this basis, the guidance documents do not mention the PSA explicitly. The Manuals (RDRM32020 and RDRM32040), do not provide explicit information about the PSA. Specifically, I would like to know: Can a non-domiciled individual claiming the remittance basis still use the PSA? Thank you

Thank you for the references to RDRM32070 and RDRM32040. I reviewed the documents, but they do not explicitly address the Personal Savings Allowance (PSA). Could you please confirm whether the PSA is forfeited when a non-domiciled individual claims the remittance basis?

I am seeking clarification regarding the Personal Savings Allowance (PSA) when claiming the remittance basis under ITA07/s809B. While it is clear that various personal tax allowances, including the Personal Allowance and the Annual Exempt Amount for capital gains, are forfeited under this basis, the guidance documents do not explicitly mention the PSA. Specifically, I would like to know: Is the PSA forfeited if a non-domiciled individual claims the remittance basis under ITA07/s809B? If the PSA is indeed forfeited, could you please provide the relevant HMRC documentation or guidance that confirms this?

I need some advice on managing transactions in a foreign brokerage account with USD as the base currency, particularly concerning the remittance basis of taxation. 1) When buying and selling futures contracts, do I need to record these transactions in GBP at each transaction level, or is it sufficient to do so only when remitting to the UK? 2) If I need to track each transaction in GBP, there could be a discrepancy in the exchange rate when I withdraw USD from the brokerage account and when it’s converted to GBP in the UK. For instance, I might withdraw an amount equivalent to £10,000, but by the time it’s converted to GBP in the UK, it might be £9,500. -Which amount should I consider as withdrawn from the brokerage account? -Which amount should I record as remitted to the UK? 3)If I use the arising basis in some years and the remittance basis in others, does this affect how I should track transactions?