CG42410 | Migration of companies before 1 January 2020: postponed charges: example
From HM Revenue & Customs · Capital Gains Manual
B Ltd is a 100 per cent subsidiary of A Ltd. It is incorporated outside the UK. Both A Ltd and B Ltd have their central management and control in the UK until 30 April 2004. On that date the central management and control of B Ltd is transferred outside the UK so that the company ceases to be UK resident, see CTM34120. A Ltd and B Ltd make an election under TCGA92/S187 that the exit charge under TCGA92/S185 should be postponed. See CG42370 for guidance on exit charges and CG42390 for guidance on the postponement of exit charges.
The gains and losses on the deemed disposal of B Ltd’s assets on 30 April 2004 are as follows. All the assets are situated outside the UK.
| - | £ |
|---|---|
| Asset No 1 gain | 10,000 |
| Asset No 2 gain | 8,000 |
| Asset No 3 gain | 32,000 |
| - | 50,000 |
| Asset No 4 loss | (12,000) |
| The postponed gain is thus | 38,000 |