Part I Capital gains tax and corporation tax on chargeable gains
F1UK residential property: non-resident CGT
14FPersons not chargeable under section 14D if a claim is made
1
A person is not chargeable to capital gains tax under section 14D in respect of a chargeable NRCGT gain accruing to the person on a non-resident CGT disposal if the person—
a
is an eligible person in relation to the disposal, and
b
makes a claim under this section with respect to the disposal.
2
A diversely-held company which makes a non-resident CGT disposal is an eligible person in relation to the disposal.
3
A scheme (see subsection (7)) which makes a non-resident CGT disposal is an eligible person in relation to the disposal if condition A or B is met.
4
Condition A is that the scheme is a widely-marketed scheme throughout the relevant ownership period.
5
Condition B is that—
a
an investor in the scheme is an offshore fund, an open-ended investment company or an authorised unit trust (“the feeder fund”),
b
the scheme is a widely-marketed scheme throughout the alternative period, after taking into account—
i
the scheme documents relating to the feeder fund, and
ii
the intended investors in the feeder fund, and
c
the scheme and the feeder fund have the same manager.
6
A company carrying on life assurance business (as defined in section 56 of the Finance Act 2012) which makes a non-resident CGT disposal is an eligible person if immediately before the time of the disposal the interest in UK land which is the subject of that disposal is held for the purpose of providing benefits to policyholders in the course of that business.
7
In this section “scheme” means any of the following—
a
a unit trust scheme;
b
a company which is an open-ended investment company incorporated by virtue of regulations under section 262 of the Financial Services and Markets Act 2000;
c
a company incorporated under the law of a territory outside the United Kingdom which is, under that law, the equivalent of an open-ended investment company.
8
In this section “the relevant ownership period”, in relation to a scheme, means—
a
the period beginning with the day on which the scheme acquired the interest in UK land which (or part of which) is the subject of the non-resident CGT disposal and ending with the day on which that disposal occurs, or
b
if shorter, the period of 5 years ending with the day on which that disposal occurs.
9
For the purposes of subsection (5), the “alternative period”, in relation to a scheme, is the shorter of—
a
the relevant ownership period, and
b
the period beginning when the feeder fund first became an investor in the scheme and ending with the date of the disposal.
10
In this section—
“diversely-held company” means a company which is not a closely-held company;
“interest in UK land” has the same meaning as in Schedule B1;
“open-ended investment company” has the same meaning as in Part 17 of the Financial Services and Markets Act 2000 (see section 236 of that Act).
11
In Schedule C1—
a
Part 1 sets out the rules for determining whether or not a company is a closely-held company;
b
Part 2 sets out how to determine whether or not a scheme is a widely-marketed scheme at any time.
Ss. 14B-14H and cross-heading inserted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 11