F1Part 1Capital gains tax and corporation tax on chargeable gains

Annotations:
Amendments (Textual)
F1

Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2

Chapter 1Capital gains tax

Territorial scope of charge

1ATerritorial scope

1

A person who is UK resident for a tax year is chargeable to capital gains tax on chargeable gains accruing to the person in the tax year on the disposal of assets wherever situated.

2

In the case of individuals who are UK resident for a tax year, see also—

a

Schedule 1 (foreign gains accruing to individuals to whom the remittance basis applies),

b

section 1G (cases where the tax year is a split year),

c

sections 1M and 1N (temporary periods of non-residence),

d

Chapter 3 (gains of non-UK resident close companies attributed to individuals), and

e

sections 86, 87, 87K, 87L and 89(2) (gains of non-UK resident trustees attributed to individuals).

3

A person who is not UK resident for a tax year is chargeable to capital gains tax on chargeable gains accruing to the person in the tax year on the disposal of—

a

assets situated in the United Kingdom that have a relevant connection to the person's UK branch or agency and are disposed of at a time when the person has that branch or agency (see section 1B),

b

assets not within paragraph (a) that are interests in UK land (see section 1C), and

c

assets (wherever situated) not within paragraph (a) or (b) that derive at least 75% of their value from UK land where the person has a substantial indirect interest in that land (see section 1D and Schedule 1A).

4

For the purposes of this Chapter a person is “UK resident” for a tax year if the person is resident in the United Kingdom during any part of the tax year.

5

For the relevant residence rules—

a

in the case of individuals, see Schedule 45 to the Finance Act 2013 (which provides that individuals meeting the applicable tests for a tax year are taken to be resident for the whole of the year),

b

in the case of the personal representatives of deceased individuals, see section 62(3), and

c

in the case of trustees of settlements, see section 69.