Loss if not UK tax resident 27 December 2022 at 11:23PM edited 27 December 2022 at 11:31PM in Cutting tax 2 replies 106 views

kerrick

If you buy an investment (shares, funds, etfs) when you are longterm resident for tax overseas, you sell while overseas, and make a capital loss. The local tax rules allow losses to offset gains in the same period, and to be carried forward to offset any gains in future years.

If you have unused losses crystallised, then you move to the UK and become UK tax resident, can you now carry forward those unused losses against future UK gains? If not, is the only way to set losses against UK gains to not sell while overseas, but to sell and crystallise the loss only after becoming UK tax resident?

Jeremy535897

If a gain on the assets sold would not be subject to UK capital gains tax, a loss would not be allowable. You would have to realise the loss while UK resident for capital gains tax.

gravlax

Thank you Jeremy. That makes sense.