CG10150 | Partial re-write of TCGA 1992
From HM Revenue & Customs · Capital Gains Manual
Schedule 1 Finance Act 2019 included a re-write of parts of the TCGA 1992 that applies to disposals on or after 6 April 2019.
This may be referred to as a re-write of Part I TCGA but its actual scope was wider.
The re-write was undertaken alongside the extension to the scope of the rules charging gains on direct or indirect disposals of interests in UK land.
The former Part I TCGA ran from section 1 to section 14H. The re-write extended beyond these sections and in particular resulted in significant changes to the former sections generally dealing with either non-residents or non-domiciled individuals. Certain changes were also required to CTA 2009.
The re-write was to simplify the alignment of the new and existing rules. Apart from the changes to implement the extension the re-write is a re-statement of the pre-existing law and makes no change to the way the pre-existing provision worked.
This manual is being reviewed to include references to both the pre-existing and re-written provisions.
The following general tables cover the main changes.
Destinations
Derivations
| Previous Provision | New Provision |
|---|---|
| 1 The Charge to Tax | 1 Capital Gains Tax |
| 2 Persons and gains chargeable to capital gains tax, and allowable losses | - |
| 2(1)-2(1A) | 1A Territorial Scope |
| 2(1B)-2(1C) | 1G Gains accruing to UK resident individuals in split years |
| 2(2) | 1 Capital Gains Tax (3) |
| 2(2A)-(2B) | 1G Gains accruing to UK resident individuals in split years (3) |
| 2(3) | 1E Losses deductible only when within scope of tax etc. (7); 1F Allowable losses to be used in most beneficial way etc (4), (5) |
| 2(4)-2(7) | 1E Losses deductible only when within scope of tax etc (4), (5) |
| 2(7A)-2(7B) | Repealed |
| 2A | Not rewritten as repealed by FA 2008, s8(2), Sch2 para 23, 25 |
| 2B Persons chargeable to capital gains tax on ATED-related gains | Repealed |
| 2C Relevant High Value Disposal | Repealed |
| 2D The Threshold Amount | Repealed |
| 2E Restriction of Losses | Repealed |
| 2F Tapering Relief for Gains | Repealed |
| 3 Annual Exempt Amount | - |
| 3(1)-3(3) | 1K Annual Exempt Amount |
| 3(3A)- 3(4) | 1L Increasing Annual exempt amount to reflect increases in CPI |
| 3(5)-3(8) | 1K Annual Exempt Amount |
| 3A Reporting Limits | Moved to s.8C of TMA |
| 4 Rates of capital gains tax | - |
| 4(1)-4(3B) | 1H The main rates of CGT |
| 4(4)-(6A) | 1I Income taxed at higher rates or gains exceeding unused basic rate band |
| 4(7)-4(11) | 1J Section 1I: definitions and other supplementary provision |
| 4(12)-4(13) | 1H The main rates of CGT (9)-(11) |
| 4A Section 4: special cases | 1J Section 1I: definitions and other supplementary provision |
| 4B Deduction of losses etc in most beneficial way | - |
| 4B(1) | 1F Allowable losses to be used in most beneficial way etc (1) |
| 4B(2) | 1K Annual Exempt Amount (5) |
| 4BA Rates, and use of unused basic rate band, in certain cases | 1I Income taxed at higher rates or gains exceeding unused basic rate band |
| 4BB Residential property gain or loss | Repealed |
| 5 | Not rewritten as repealed by FA 1998, s165, Sch 27, PtIII(29) |
| 6 | Not rewritten as repealed by FA 2008, s8(2), Sch 2, paras 1,3 |
| 7 | Not rewritten as repealed by FA 1995, ss 103(7), 115(12), 162, Sch 29 Pt VIII(14) |
| 8 Company’s total profits to include chargeable gains | - |
| 8(1) – 8(2) | 2A Company’s total profits to include chargeable gains |
| 8(3) | 2D Application of CGT principles in calculating gains and losses |
| 8(4) | 2E References to income tax or Income Tax Acts in case of companies |
| 8(5) | 2F Interaction of capital gains tax and corporation tax |
| 8(6) | 2G Assets of a company vested in a liquidator |
| 9 | Not rewritten as repealed by FA 2013, s218(1), Sch 45, Pt 5, para 148(1), (2) |
| 10 Non-resident with United Kingdom branch or agency | 1B Non-Residents: UK branch or agency |
| 10A Temporary non-residents | 1M Temporary non-residents ; 3E Temporary non-residents |
| 10AA Section 10A: supplementary | - |
| 10AA(1)-10AA(3) | 1N Section 1M(1): assets acquired in temporary period of non-residence |
| 10AA(4)-10AA(5) | 1M Temporary non-residents (4), (6) |
| 10B Non-resident company with United Kingdom permanent establishment | 2B Territorial scope of charge to corporation tax on chargeable gains (3) (b) and 2C Non-UK resident company with UK permanent establishment |
| 11 Visiting forces and official agents | - |
| 11(1) | 271ZA Visiting forces and staff of designated allied headquarters |
| 11(2), (3) | 271ZB Official agents of Commonwealth countries or Republic of Ireland etc |
| 12 Non-UK domiciled individuals to whom remittance basis applies | Schedule 1 UK resident individuals not domiciled in UK, para. 1, para 5 |
| 13 Attribution of gains to members of non-resident companies | - |
| 13(1) – 13(4) | 3 Gains attributed to UK resident individuals etc (1)-(6), (11) |
| 13(5) | 3 Gains attributed to UK resident individuals etc (1); 3A Gains connected to avoidance or foreign activities (1)-(2) |
| 13(5A)- (7) | 3C Prevention of double UK taxation |
| 13(8) | 3 Gains attributed to UK resident individuals etc. (9)-(11) |
| 13(9) -13(10) | 3 Gains attributed to UK resident individuals etc (2), (7)-(8) |
| 13(10B) | 3B Participators and their interests (5), (6) |
| 13(11)- (11A) | 3G Supplementary Provisions |
| 13(12)-(14) | 3B Participators and their interests (1)-(4) |
| 13A Section 13(5): interpretation | 3A Gains connected to avoidance or foreign activities etc (4)-(7) |
| 14 Non-resident groups of companies | 3F Non-resident groups of companies |
| 14A Section 13: non-UK domiciled individuals | 3D Non-UK domiciled individuals |
| 14B Meaning of “non-resident CGT disposal” | Repealed |
| 14C | Repealed by FA 2016, s83(15), Sch11, paras 1,3 |
| 14D Persons chargeable to capital gains tax on NRCGT gains | Repealed |
| 14E Further provision about use of NRCGT losses | Repealed |
| 14F Persons not chargeable under section 14D if a claim is made | Repealed |
| 14G Section 14F: divided companies | Repealed |
| Section 14H Section14F: arrangements for avoiding tax | Repealed |
| New Provision | Previous Provision |
|---|---|
| 1 Capital Gains Tax | 1 The Charge to Tax, 2(2) |
| 1A Territorial scope | 2(1)-2(1A) |
| 1B Non-UK residents:UK branch or agency | 10 Non-resident with United Kingdom branch or agency |
| 1C Non-UK residents: disposing of 'an interest in UK land' | - |
| 1D Non-UK residents: assets deriving 75% of value from UK land etc | - |
| 1E Losses deductible only when within the scope of tax etc | 2(3), 2(4)-2(7) |
| 1F Allowable losses to be used in the most beneficial way etc | 4B(1) |
| 1G Gains accruing to UK resident individuals with split tax years | 2(1B)-2(1C), 2(2A)-(2B) |
| 1H The main rates of CGT | 4(1)-4(3B), 4(12)-4(13) |
| 1I Income taxed at higher rates or gains exceeding unused basic rate band | 4(4)-(6A), 4BA Rates, and use of unused basic rate band, in certain cases |
| 1J Section 1I: definitions and other supplementary provision | 4A Section 4: special cases, 4(7)-4(11) |
| 1K Annual exempt amount | 3(1)-3(3), 3(5)-3(8), 4B(2) |
| 1L Increasing annual exempt amount to reflect increases in CPI | 3(3A)- 3(4) |
| 1M Temporary non-residents | 10A Temporary non-residents, 10AA(4)-10AA(5) |
| 1N Section 1M(1): assets acquired in temporary period of non-residence | 10AA(1)-10AA(3) |
| 1O Definitions in Chapter | - |
| 2 Corporation tax on chargeable gains: the general scheme | - |
| 2A Company’s total profits to include chargeable gains | 8(1) – 8(2) |
| 2B Territorial scope of charge to corporation tax on chargeable gains | 10B Non-resident company with United Kingdom permanent establishment |
| 2C Non-UK resident company with UK permanent establishment | 10B Non-resident company with United Kingdom permanent establishment |
| 2D Application of CGT principles in calculating gains and losses | 8(3) |
| 2E References to income tax or Income Tax Acts in case of companies | 8(4) |
| 2F Interaction of capital gains tax and corporation tax | 8(5) |
| 2G Assets of a company vested in a liquidator | 8(6) |
| 3 Gains attributed to UK resident individuals etc. | 13(1) – 13(5), (8)-(10) |
| 3A Gains connected to avoidance or foreign activities etc | 13A Section 13(5): interpretation |
| 3B Participators and their interests | 13(12)-(14), 13(10B) |
| 3C Prevention of double UK taxation | 13(5A)- (7) |
| 3D Non-UK domiciled individuals | 14A Section 13: non-UK domiciled individuals |
| 3E Temporary non-residents | 10A Temporary non-residents |
| 3F Non-resident groups of companies | 14 Non-resident groups of companies |
| 3G Supplementary Provisions | 13(11)- (11A) |
| 271ZA Visiting forces and staff of designated allied headquarters | 11(1) |
| 271ZB Official agents of Commonwealth countries or Republic of Ireland etc | 11(2), (3) |
| Schedule 1 UK resident individuals not domiciled in UK, para. 1, para 5 | 12 Non-UK domiciled individuals to whom remittance basis applies |