SCHEDULES
SCHEDULE 8Deemed domicile: income tax and capital gains tax
PART 3Capital gains tax rebasing
41
1
This paragraph applies to the disposal of an asset by an individual (“P”) where—
a
the asset was held by P on 5 April 2017,
b
the disposal is made on or after 6 April 2017,
c
the asset was not situated in the United Kingdom at any time in the relevant period, and
d
P is a qualifying individual.
2
The relevant period is the period which—
a
begins with 16 March 2016 or, if later, the date on which P acquired the asset, and
b
ends with 5 April 2017.
3
P is a qualifying individual if—
a
section 809H of ITA 2007 (claim for remittance basis by long-term UK resident: charge) applied in relation to P for any tax year before the tax year 2017-18,
b
P is not an individual—
i
who was born in the United Kingdom, and
ii
whose domicile of origin was in the United Kingdom,
c
P was not domiciled in the United Kingdom at any time in a relevant tax year, and
d
P met condition B in section 835BA of ITA 2007 in relation to each relevant tax year.
4
The relevant tax years are—
a
the tax year 2017-18, and
b
if the disposal was made after that tax year, all subsequent tax years up to and including that in which the disposal was made.
5
In computing, for the purpose of TCGA 1992, the gain or loss accruing on the disposal, it is to be assumed that P acquired the asset on 5 April 2017 for a consideration equal to its market value on that date.
6
Sub-paragraph (5) applies notwithstanding section 58(1) of TCGA 1992 (disposals between spouses).
7
Where under section 127 of TCGA 1992 (including that section as applied by sections 132, 135 and 136 of that Act) an original and a new holding of shares or other securities are treated as the same asset, the condition in sub-paragraph (1)(c) applies to both the original and the new holding.
8
This Part of this Schedule has effect as if it were included in TCGA 1992.