Taxation of Chargeable Gains Act 1992

[F1 6 (1) This paragraph applies if— U.K.

(a) a person disposes of an asset that derives at least 75% of its value from UK land (as determined in accordance with Part 2 of Schedule 1A), and

(b) the disposal has an appropriate connection to a collective investment vehicle (see sub-paragraphs (3) to (6) for the cases in which this test is met).

(2) For the purposes of section 1A(3)(c) or 2B(4)(b) (disposals by non-UK residents of assets deriving 75% of value from UK land etc), the person is treated as having a substantial indirect interest in the UK land at the time of the disposal.

(3) A disposal has an appropriate connection to a collective investment vehicle if the asset disposed of consists of a right or interest in—

(a) a collective investment vehicle, or

(b) a company at least half of whose market value derives from its being a direct or indirect participant in one or more collective investment vehicles.

(4) A disposal has an appropriate connection to a collective investment vehicle if—

(a) the vehicle is constituted by two or more persons carrying on a trade or business in partnership, and

(b) the disposal is made by a person as a participant in the vehicle.

(5) A disposal has an appropriate connection to a collective investment vehicle if the vehicle is a company and the disposal is made by it.

(6) A disposal has an appropriate connection to a collective investment vehicle if—

(a) a company (which is not the vehicle) makes the disposal, and

(b) the vehicle, and one or more other collective investment vehicles that are UK property rich, have a 50% investment in the company.

(7) Collective investment vehicles have a 50% investment in a company if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 50%, the vehicles would be regarded as having a 50% investment in the company at the time of the disposal.

(8) For this purpose the collective investment schemes are to be regarded as if they were a single person.

(9) This paragraph is subject to paragraph 7 (collective investment vehicles expected to have no more than 40% investments in UK land).]

Textual Amendments

F1 Sch. 5AAA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 21