Finance Act 1989

126 Non-resident carrying on profession or vocation in the United Kingdom. U.K.

(1) For the year 1988-89, section 12 of the M1 Capital GainsTax Act 1979 (non-resident with United Kingdom branch or agency) shall haveeffect with the insertion of the following subsection after subsection(2)—

“(2A) In the case of a disposal made on or after 14th March 1989, this sectionshall apply as if references to a trade included references to a professionor vocation, but not so as to make a person chargeable to capital gains taxby virtue of a profession or vocation which he ceased to carry on in theUnited Kingdom through a branch or agency before 14th March 1989.”

(2) For the year 1989-90 and subsequent years of assessment section 12 of theCapital Gains Tax Act 1979 shall have effect with the insertion of thefollowing subsection after subsection (2)—

“(2A) This section shall apply as if references to a trade included referencesto a profession or vocation.”

(3) Where immediately before 14th March 1989 a person is not resident and notordinarily resident in the United Kingdom but is carrying on a profession orvocation in the United Kingdom through a branch or agency, he shall be deemedfor all purposes of capital gains tax—

(a) to have disposed immediately before 14th March 1989 of every asset towhich subsection (4) below applies, and

(b) immediately to have reacquired every such asset,

at its market value at the time of the deemed disposal.

(4) This subsection applies to any asset which was held by the personimmediately before 14th March 1989 and which at the beginning of 14th March1989 is a chargeable asset in relation to him by virtue of his carrying on theprofession or vocation.

(5) For the purposes of subsection (4) above an asset is at the beginning of14th March 1989 a chargeable asset in relation to the person if, were it tobe disposed of at that time, any chargeable gains accruing to him on thedisposal would be gains in respect of which he would be chargeable to capitalgains tax under section 12(1) of the Capital Gains Tax Act 1979.

(6) In the case of a person carrying on a profession or vocation in the UnitedKingdom through a branch or agency, the charge to capital gains tax undersection 12(1) of the Capital Gains Tax Act 1979 shall not apply in respect ofchargeable gains accruing on the disposal of assets only used in or for thepurposes of the profession or vocation before 14th March 1989 or only used orheld for the purposes of the branch or agency before that date.

Marginal Citations

M1 1979 c. 14.