Situs of assets for CGT (and private client)
Situs of assets for CGT (and private client)

The following Private Client practice note provides comprehensive and up to date legal information covering:

  • Situs of assets for CGT (and private client)
  • What is the relevance of situs for CGT?
  • Situs of assets for CGT

Situs of assets for CGT (and private client)

When you advise an individual on cross-border issues or offshore tax planning, it is important to establish the 'situs' (ie location) of the assets owned by or for the individual. This Practice Note explains the relevance of situs for capital gains tax (CGT) and looks at the meaning of 'situs' for this purpose.

The aim is to introduce the statutory concept of situs for CGT. However, in practice the situs of each asset must be considered on a case by case basis, with reference to the legislation and case law.

For guidance on the common law (or international private law) rules, which apply to succession and inheritance tax, see Practice Note: Situs of assets for succession and IHT.

What is the relevance of situs for CGT?

The situs of an asset is relevant to CGT in the following circumstances:

  1. Remittance basis users only pay CGT on foreign situs gains if they are remitted to the UK

  2. Non-resident individuals carrying on a trade or profession in the UK through a branch or agency will only be subject to CGT on gains arising on the disposal of assets in the UK, which are used for the business or by the branch or agency

For guidance on the taxation of remittance basis users and non-residents, see Practice Notes: Introductory guide to residence and domicile for

Related documents:

Popular documents