ÀÏ˾»úÎçÒ¹¸£Àû

CGT on non-resident trusts


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024

CGT on non-resident trusts


Produced by a Tolley Trusts and Inheritance Tax expert
Trusts and Inheritance Tax
Guidance
tag-icon Autumn Budget 2024
imgtext

Non-residents’ liability for CGT

With effect from 6 April 2019, a person who is not UK resident for a tax year is chargeable to capital gains tax on gains accruing within the year on disposals of assets which are:

  1. •

    situated in the UK and used in the trust’s UK branch or agency (ie for the purposes of a trade, profession or vocation in the UK)

  2. •

    interests in UK land, or

  3. •

    assets which derive at least 75% of their value from UK land (eg company shares) and the trust has a ‘substantial indirect interest’ in the land. This might be, for example, a 25% investment in a company holding UK land

TCGA 1992, s 1A(3) (from 6 April 2019); TCGA 1992, ss 10, 14B (up to 5 April 2019)

This is commonly known as the non-resident capital gains tax (NRCGT) regime.

The default position is that CGT is charged only on UK residents on the disposal of chargeable assets. The charge on non-residents trading through a UK branch or agency is a long-standing exception

Continue reading
To read the full Guidance note, register for a free trial of Tolley+â„¢
TAKE A FREE TRIAL
Powered by
  • 01 Nov 2024 07:11

Home/ Tolley Tax Guidance/ Trusts and Inheritance Tax / Advising on offshore matters

Popular Articles

Personal Tax

Taxation of dividend income

Taxation of dividend incomeIntroductionA dividend is a distribution of profit by a company to its shareholders.A dividend is not only a payment in cash. It can be the issue of new shares in exchange for forfeiting the right to a cash payment (a stock dividend). For more detail, see the Cash

14 Jul 2020 13:48 | Produced by Tolley Read more Read more
tag-icon Tax Returns
Personal Tax

Payment of the remittance basis charge

Payment of the remittance basis chargeRemittance basis chargeThe remittance basis charge is an annual charge payable by ‘long-term’ UK residents for the privilege of claiming the remittance basis.Taxpayers who wish to utilise the remittance basis (but do not qualify for it automatically) must pay

14 Jul 2020 12:52 | Produced by Tolley Read more Read more
Trusts and Inheritance Tax

Corrections and amendments to the IHT account

Corrections and amendments to the IHT accountThis guidance note explains how to deal with changes to the taxable values in the original inheritance tax account.Why do amendments arise?When the IHT account is first submitted to HMRC, it is based on information available at an early stage of the

14 Jul 2020 11:20 | Produced by Tolley Read more Read more