Gains attributable to participators in non-UK resident companies

Produced by Tolley
Gains attributable to participators in non-UK resident companies

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Gains attributable to participators in non-UK resident companies
  • Conditions
  • What if the non-resident company is part of a non-resident group?
  • Exceptions to the charge
  • Attribution of gains and losses
  • Gains
  • Losses
  • Reporting
  • Company pays the tax on the attributed gain
  • Participator pays the tax on the attributed gain ― reliefs available
  • More...

As part of the changes introduced by FA 2019, Sch 1, TCGA 1992, Part 1 was rewritten. The new TCGA 1992, Part 1 largely restates the existing law but also includes additional provisions to bring disposals by non-UK residents of UK land from 6 April 2019 within the charge to tax. The rewrite was intended to modernise and simplify the structure of the UK capital gains rules as well as to accommodate the rules on disposals of interests in assets relating to UK land by non-UK residents. Where the legislation has been restated, the legislative links to the previous law shown in this guidance note are for reference only.

Non-resident companies are not normally liable to tax on chargeable gains even if the assets disposed of by the company are situated in the UK. The main exceptions to this are:

  1. where the assets 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. for disposals made between 6 April 2013 and 5 April 2019, where the assets are interests in UK residential property and the whole or part of the gain is ‘ Annual Tax on Enveloped Dwellings (ATED) related’ or is within the scope of the Finance Act 2015 non-residents CGT (NRCGT) regime. See the Overview of the ATED regime and Non-resident capital gains tax (NRCGT) on UK residential property (2015–2019 rules) guidance notes for further details

  3. for disposals made on or after 6 April 2019, where the assets are interests in UK residential or commercial property or shares in a company that derives at least 75% of its gross asset value from UK land and the whole or part of the gain is within the scope of FA 2019 NRCGT regime. See the Overview of the rules on disposals of interests in UK land by non-residents guidance note for further details

As there could be scope for a UK

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