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Non-residents’ liability for CGT

With effect from 6 April 2019, a person who is not UK resident for a tax year is chargeable to capital gains tax on gains accruing within the year on disposals of assets which are:

1. •

   situated in the UK and used in the trust’s UK branch or agency (ie for the purposes of a trade, profession or vocation in the UK)

2. •

   interests in UK land, or

3. •

   assets which derive at least 75% of their value from UK land (eg company shares) and the trust has a ‘substantial indirect interest’ in the land. This might be, for example, a 25% investment in a company holding UK land

TCGA 1992, s 1A(3) (from 6 April 2019); TCGA 1992, ss 10, 14B (up to 5 April 2019)

This is commonly known as the non-resident capital gains tax (NRCGT) regime.

The default position is that CGT is charged only on UK residents on the disposal of chargeable assets. The charge on non-residents trading through a UK branch or agency is a long-standing exception