The First-tier Tribunal had ruled in the case in Patsy-Anne Saunders v HMRC  UKFTT 0765 (TC)) last month that where a non-resident taxpayer made a loss for Non–Resident Capital Gains Tax (NRCGT) purposes, there was no obligation to file a NRCGT return.
The Judge observed the reporting requirements for Capital Gains Tax (CGT) under self-assessment required a disposal to be reported, whether there was a loss or gain. Where a NRCGT disposal was made, section 12ZB of the Taxes Management Act 1970 required that the “appropriate person” must file a NRCGT and defined the “appropriate person” as the “taxable person” in relation to the disposal. Section 12ZA defined the “taxable person” as the person who would be chargeable to CGT in respect of any chargeable NRCGT gain. Therefore it was observed that on a strict reading of sections 12ZA and 12ZB the taxpayer had no obligation to file a NRCGT return given that a loss was made. Consequently it was ruled that the HMRC guidance which specifically provides that a NRCGT return is required if a loss accrues is incorrect.
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