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Part IIIncome Tax, Corporation Tax and Capital Gains Tax

Chapter IIICapital Gains

Non-residents etc.

132Dual resident companies: deemed disposal

(1)For the purposes of this section, a company is a dual resident company if it is resident in the United Kingdom and falls to be regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom.

(2)Where an asset of a dual resident company becomes a prescribed asset, the company shall be deemed for all purposes of the [1979 c. 14.] Capital Gains Tax Act 1979—

(a)to have disposed of the asset immediately before the time at which it became a prescribed asset, and

(b)immediately to have reacquired it,

at its market value at that time.

(3)Subsection (2) above does not apply where the asset becomes a prescribed asset on the company becoming a company which falls to be regarded as mentioned in subsection (1) above.

(4)This section applies where an asset becomes a prescribed asset on or after 14th March 1989.

(5)In this section—