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CG57301 | Non-resident companies: exemptions

From HM Revenue & Customs · Capital Gains Manual

There are a number of exemptions from TCGA92/S13*. Some of these apply automatically. The exemptions are:

  • apportionments of a company’s gain (see CG57305) where the amount apportioned would be:

    • for years up to and including 2011-12 ten per cent or less

    • for years 2012-13 and subsequent years twenty five per cent or less

  • disposals of assets used for a foreign trade, see CG57305

  • disposal of currency used for a foreign trade, see CG57305

  • disposal of assets used for the trade of a UK permanent establishment, see CG57305

  • disposal of assets used for the purposes of economically significant activities - for 2012-13 and later years, see CG57314 (where the arrangements reflect genuine economic reality)

  • disposal of assets where the arrangements did not involve a tax avoidance motive - for 2012-13 and later years, see CG57319

  • carried interest gains under s103KA, see CG38623

  • ATED related gains (for periods to 5 April 2019) see CG73600 onwards.

  • The part of any overall gain chargeable on the non-resident company in connection with UK Land or property see CG73920 onwards (for disposals from 6 April 2019 and see CG73700 for the period from 6 April 2015 to 5 April 2019).

If the participator is not domiciled** in the UK and the asset the company disposed of was not situated in the UK then the gain deemed to accrue to the participator is a foreign chargeable gain and the remittance basis may therefore apply, with the result that a tax charge only arises when the gain is remitted to the UK (TCGA92/S14A)*. For guidance on the remittance basis and the meaning of remitted to the United Kingdom, see CG25000+ and the Residence, Domicile & Remittances Manual.

Certain changes introduced by the Finance Act 2013 apply to gains accruing to the company on or after 6 April 2012. However see CG57302.

*TCGA92/S13 was re-written for disposals from 6th of April 2019 see CG10150.

** For years from 2017/18 consideration would also need to be given to see if the individual was deemed domiciled. If an individual is deemed domilciled they cannot claim the remittance basis. Guidance on deemed domicile is within the Residence, Domicile and Remittance Basis Manual.