Corporation Tax

Disposals of UK land by non-resident companies (NRCG regime) ― overview

Produced by Tolley
  • 10 Jan 2022 15:02

The following Corporation Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Disposals of UK land by non-resident companies (NRCG regime) ― overview
  • Development of the law
  • Summary of the NRCG 2019 regime
  • Rates of tax
  • Exclusions
  • Key practical points
  • Which disposals are chargeable?
  • Interests in UK land
  • Non-residence
  • Capital losses on disposals by non-resident companies
  • More...

Disposals of UK land by non-resident companies (NRCG regime) ― overview

Development of the law

Prior to April 2013, non-resident companies were typically not within the scope of UK corporation tax on chargeable gains, save in respect of capital assets which were used as part of a UK permanent establishment. This offered a particular incentive to non-resident companies investing in UK land. However, from April 2013, there has been a gradual erosion of this tax benefit.

The following legislative measures diminished the attractiveness of investing in UK immovable property for non-resident persons:

  1. from 6 April 2013 until 5 April 2019, disposals of high value UK residential property by non-resident companies, partnerships with a corporate member and collective investment schemes became subject to CGT at a rate of 28% where the property was chargeable to the annual tax on enveloped dwellings (ATED-related gains). This regime was repealed for disposals made on or after 6 April 2019. It should be noted that while the ATED-related gains regime has been repealed, the ATED charge itself still applies, where relevant. For more on the ATED charge and the ATED-related CGT provisions, see the Overview of the ATED regime guidance note and Simon’s Taxes C2.1125–C2.1129A

  2. from 6 April 2015 until 5 April 2019, a CGT charge applied more generally to non-UK residents disposing of UK residential property. The charge applied to a much broader class of non-UK residents and irrespective of the value of the residential property held. From this date, non-UK resident individuals, closely-held companies, trustees,

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Capital vs revenue expenditure

Capital vs revenue expenditureExpenditure of a capital nature is not allowed as a deduction when calculating trading profits. Expenditure of a revenue nature is allowable, provided there is no specific statutory rule prohibiting a deduction and the expenditure also satisfies the wholly and

25 Oct 2021 07:01 | Produced by Tolley Read more Read more

VAT fuel scale charges

VAT fuel scale chargesWhat are fuel scale charges?The VAT fuel scale charge is a simplified method that can be used by a business that funds both business and private mileage costs for employees to account for any output tax due on the private use of the vehicle. The charge was introduced to

19 Oct 2021 11:21 | Produced by Tolley Read more Read more

Bare trusts ― income tax and CGT

This guidance note explains how trustees of bare trusts are treated for income tax and capital gains purposes. Although a bare trust is, in equity, a type of trust, for both income tax and capital gains tax purposes its existence is transparent. This means that no tax liability falls on the trustees

27 Oct 2021 19:01 | Produced by Tolley Read more Read more