Part II General Provisions relating to computation of gains and acquisitions and disposals of assets
Chapter II Assets and disposals of assets
General provisions
25 Non-residents: deemed disposals.
1
Where an asset ceases by virtue of becoming situated outside the United Kingdom to be a chargeable asset in relation to a person, he shall be deemed for all purposes of this Act—
a
to have disposed of the asset immediately before the time when it became situated outside the United Kingdom, and
b
immediately to have reacquired it,
at its market value at that time.
C12
Subsection (1) above does not apply—
a
where the asset becomes situated outside the United Kingdom contemporaneously with the person there mentioned ceasing to carry on a trade in the United Kingdom through a branch or agency, or
b
where the asset is an exploration or exploitation asset.
C13
Where an asset ceases to be a chargeable asset in relation to a person by virtue of his ceasing to carry on a trade in the United Kingdom through a branch or agency, he shall be deemed for all purposes of this Act—
a
to have disposed of the asset immediately before the time when he ceased to carry on the trade in the United Kingdom through a branch or agency, and
b
immediately to have reacquired it,
at its market value at that time.
F13A
Subsection (3) above shall not apply if—
a
the person ceasing to carry on the trade is a company, and
b
the trade is transferred to another company in circumstances in which section 139 or 171 applies in relation to the assets transferred.
F24
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C15
Subsection (3) above does not apply to an asset which is a chargeable asset in relation to the person there mentioned at any time after he ceases to carry on the trade in the United Kingdom through a branch or agency and before the end of the chargeable period in which he does so.
6
In this section—
“exploration or exploitation asset” means an asset used in connection with exploration or exploitation activities carried on in the United Kingdom or a designated area, and
“designated area” and “exploration or exploitation activities” have the same meanings as in section 276.
7
For the purposes of this section an asset is at any time a chargeable asset in relation to a person if, were it to be disposed of at that time, any chargeable gains accruing to him on the disposal—
a
would be gains in respect of which he would be chargeable to capital gains tax under section 10(1), or
b
would form part of his chargeable profits for corporation tax purposes by virtue of section F310B.
8
This section shall apply as if references to a trade included references to a profession or vocation.