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
F3b
on ceasing to carry on the trade the asset is disposed of in circumstances in which section 139 or 171 applies.
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 F4the disposal would be chargeable to capital gains tax under section 1A(3)(a) or to corporation tax under section 2B(3).
8
This section shall apply as if references to a trade included references to a profession or vocation.