Q&As

What does ‘qualifying trade’ mean in relation to the exemption from the NRCGT rules contained in paragraph 5 of Schedule 1A to the Taxation of Chargeable Gains Act 1992? Is there any guidance or case law?

read titleRead full title
Published on LexisPSL on 22/05/2020

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • What does ‘qualifying trade’ mean in relation to the exemption from the NRCGT rules contained in paragraph 5 of Schedule 1A to the Taxation of Chargeable Gains Act 1992? Is there any guidance or case law?

Where a property-rich entity is trading before and after a disposal of an interest in it and the UK land is used in the qualifying trade, any indirect disposal of UK real property is excepted from the charge for indirect disposals on or after 6 April 2019.

An interest in UK land is used for trading purposes if it is being used in or for the purposes of a qualifying trade or it has been acquired for use in or for the purposes of a qualifying trade.

A trade is a qualifying trade if:

  1. it has been carried on by the company, or by a person connected with the company, throughout the period of one year ending with the time of disposal on a commercial basis with a view to the realisation of profits,

Related documents:

Popular documents