Foreign Capital Loss

[tannaroo]

Hi,

I have a foreign capital loss from the sale of USA shares. Can this foreign capital loss be used to offset UK capital gains (shares/property etc) either now or in the future?

Thanks

[maths]

Yes, assuming you are UK domiciled.

[tannaroo]

Thanks.

For a UK Non Dom, I guess the foreign capital loss can be used if the proceeds from those shares are remitted to the UK?

[LozaACCS]

The position post 05/04/08 for a non dom is as follows;

If you do not elect to be a Remittance Base User (RBU) (S809B ITA 2007) then your overseas losses are treated the same as UK losses, ie you net them off against gains.

If you make a RBU election
The losses cannot be utilised unless you make an irrevocable election under S 16ZA TCGA 1992, the election must be made within 4 years from the end of the tax year in which the first RBU election is made.
Having made the election statutory ordering rules deem the overseas losses to be utilised in the following order; (S16ZC(3))

1 Foreign gains remitted to the UK
2 Unremitted foreign gains
3 UK gains.

The effect is to restrict relief until overseas gains are remitted.

[tannaroo]

Thanks for that.

I have another related question. I have some Canadian dollars in my UK broker account. A few years ago I converted GBP into CAD with a view to buy Canadian shares but I never did. So the CAD funds just sat there in my UK broker account earning interest. I now want to convert those CAD back into GBP.

Is this subject to capital gain / losses?

[maths]

No CGT charge (or allowable loss) if if there is a sterling gain on conversion of C$ into £.

[DavidTreitel]

Moving back to capital losses, one needs to convert to Sterling using spot rates on each date of purchase and sale. There may be a loss, but still a gain in Sterling.