C2.1160 Overview of the rules for property rich collective investment vehicles (CIVs)
For the latest New Development, see ND.1809.
For disposals made on or after 6 April 2019, non-resident persons are chargeable to UK tax on gains from direct disposals and indirect disposals of UK land (see C2.1145–C2.1154).
While, in principle, these rules apply to all non-resident persons (including offshore collective investment vehicles), the rules are modified in the case of CIVs and their investors so as to limit the potential for multiple layers of taxation in the UK and any unintended consequences of the rules for exempt investors in offshore pension funds and similar vehicles.
The default position for offshore CIVs and their investors follows the general rules but on the assumption that all offshore CIVs (apart from partnerships or those that are already companies) are deemed to be companies.
This treatment broadly results in two consequences for capital disposals made on or after 6 April 2019:
• gains on direct disposals of UK land by non-resident CIVs (other than co-ownership authorised contractual schemes (CoACs)) are chargeable to corporation tax,