Paragraph 13 Capital gains tax: reliefs in respect of matched capital payments
United Kingdom
Sub-paragraph (2) applies where—
chargeable gains are treated as accruing to an individual in a tax year under section 87(2) or 89(2) of TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and
an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 3.
The gains are to be reduced by the amount of that designated qualifying overseas capital.
Sub-paragraph (4) applies where—
an individual is charged to capital gains tax by virtue of the matching (under section 87A of TCGA 1992) of a capital payment with the section 1(3) amount for the tax year 2024-25 or any earlier tax year,
section 91(2) of TCGA 1992 (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (4)) apply in relation to the capital payment mentioned in paragraph (a),
an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and
the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 3(2), be matched with the section 1(3) amount mentioned in paragraph (a).
Section 91(2) of TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (3)(a) as is matched with the amount of the section 1(3) amount as would also, in accordance with paragraph 3(2), be matched with the amount of a capital payment mentioned in sub-paragraph (3)(c).
Sub-paragraph (6) applies where—
chargeable gains are treated as accruing to an individual in a tax year under paragraph 8(1) of Schedule 4C to TCGA 1992 as a result of a capital payment made to an individual by the trustees of a settlement, and
an amount of that capital payment is qualifying overseas capital that has been designated by the individual under paragraph 5.
The gains are to be reduced by the amount of that designated qualifying overseas capital.
Sub-paragraph (8) applies where—
an individual is charged to capital gains tax by virtue of the matching (under section 87A of TCGA 1992 as it has effect for the purposes of paragraph 8(3) of Schedule 4C to that Act) of a capital payment with the section 1(3) amount in the Schedule 4C pool for the tax year 2024-25 or any earlier tax year,
paragraph 13(2) of Schedule 4C to that Act (increase of tax where capital payment matched to section 1(3) amount for earlier tax year) would (ignoring sub-paragraph (8)) apply in relation to the capital payment mentioned in paragraph (a),
an amount of a capital payment (which may or may not be the payment mentioned in paragraph (a)) is qualifying overseas capital that has been designated by the individual, and
the amount designated is qualifying overseas capital as a result of the fact it would, in accordance with paragraph 5(2), be matched with the section 1(3) amount mentioned in paragraph (a).
Paragraph 13(2) of Schedule 4C to TCGA 1992 does not apply to capital gains tax payable by the individual in respect of so much of the capital payment mentioned in sub-paragraph (7)(a) as is matched with the amount of the section 1(3) amount in the Schedule 4C pool as would also, in accordance with paragraph 5(2), be matched with the amount of a capital payment mentioned in sub-paragraph (7)(c).
For the purposes of this paragraph—
“section 1(3) amount” has the meaning it has in section 87 of TCGA 1992;
“section 1(3) amount in the Schedule 4C pool” is to be construed in accordance with Schedule 4C to TCGA 1992.
This paragraph has effect for the tax year 2025-26 and subsequent tax years.