CG73834 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Companies: Special rules: Companies migrating from the UK - deemed disposal of UK residential property interest

TCGA92/S185 deems a company which ceases to be resident in the UK to dispose of its assets at the time of migration, and immediately reacquire them at market value (see CG42370). TCGA92/S187B applies where there is a deemed disposal of a UK residential property interest by virtue of TCGA92/S185.

If a non-resident CGT gain or allowable non-resident CGT loss would accrue to the company if it were non-resident at the time of the deemed disposal, the gain or loss is treated as not accruing immediately at the time of the deemed disposal, but rather on a subsequent disposal of all or part of the interest. Gains or losses so deferred are aggregated with any additional non-resident CGT gains or losses that actually accrue on the disposal.

A company may make an election not to apply this rule in relation to the deemed disposal, with the result that the gain or loss does accrue at the time the company ceases to be UK resident. Such an election must be made within two years from the day on which the company ceases to be UK resident.