This guidance note explains the legislation which attributes capital gains made by a non-resident company which would be a close company if it were UK-resident to the qualifying direct and indirect participators. The attributed gains are charged to capital gains tax (CGT) or corporation tax on those participators in proportion to their respective interests in the company.

Non-resident companies are only liable to UK tax on chargeable gains on disposals of:

1. •

   assets located in the UK which are used for the purposes of a trade carried on in the UK through a permanent establishment (PE) such as a branch or agency

2. •

   interests in UK land or shares in a company that derives at least 75% of its gross asset value from UK land where the whole or part of the gain is within the scope of the non-resident capital gains (NRCG) regime. See the Non-resident capital gains tax (NRCGT) on UK land ― individuals and Disposals of UK land by non-resident companies (NRCG regime) ― overview guidance notes for further