Commentary

C1.604 Location ('situs') of assets—general

Capital gains tax
Capital gains tax | Commentary

C1.604 Location ('situs') of assets—general

Capital gains tax | Commentary

C1.604 Location ('situs') of assets—general

The capital gains charge applies to assets wherever they are situated, but in certain circumstances there are reliefs or exemptions for gains from assets situated outside the UK. Accordingly, the location of an asset (also referred to as the asset's 'situs') may be of importance in order to determine whether a charge arises in particular circumstances, for example where a non-resident carries on a trade, profession or vocation in the UK through a branch or agency (see C1.602), or where a resident who is not domiciled in the UK makes a gain from a disposal of an asset abroad (see C1.603).

There are statutory rules for determining the situs of particular classes of assets for the purposes of CGT. These take precedence over the general law rules. Where the asset does not fall within of the specific statutory categories, the general law applies to determine the asset's situs1.

The following statutory rules have effect to determine the situs of any asset at any time on or after 16 March 2005, regardless of when the asset in question was acquired. The rules are as follows2:

''(a)     rights or interests in or over immovable property (otherwise than by way of security) are situated where that property is: for example, a lease of land in the USA is situate in the USA even

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