Readers' Forum - Shifting sands

Shifting sands

Our client Mr X is a UK resident but non-domiciled individual. In 2015-16 he realised a chargeable gain on a foreign disposal which qualified for entrepreneurs’ relief and would have used the full £10m lifetime limit. The proceeds were not remitted to the UK but a protective entrepreneurs’ relief claim was submitted to HMRC so that when proceeds were remitted to the UK the gain would be taxable at the capital gains tax rate prevailing when the gain was remitted. This protective claim was agreed with HMRC. Subsequently in 2017-18 Mr X remitted £1m of the proceeds and the tax return included a chargeable gain of £1m at 10% (the proceeds being virtually the same as the gain given the nominal value of original investment).

On reading the draft Finance Bill 2020 which reduces the lifetime limit from £10m...