CG73842 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Companies: Special rules: Elections to join pooling groups

TCGA92/S188A sets out the rules for groups of companies to make an election to pool non-resident CGT gains and losses. The election must specify the date it starts, and be made jointly by all members of the group who are eligible to do so.

Companies are eligible if they are members of the group and, on the effective date of the election, they are not resident in the UK, they are closely-held companies, they are not carrying on life assurance business, they do not hold any assets whose disposal would not be an NRCGT disposal because of TCGA92/S10B* (assets of a UK permanent establishment) and they hold a UK residential property interest.

The pooling election must be made not later than 30 days after the day specified as its effective date. Once made, the election is irrevocable. For the purposes of the pooling provisions a group of companies is as defined in TCGA92/S170.

TCGA92/S188B explains that a group formed of the companies which make a pooling election under TCGA92/S188A is an “NRCGT group”. An NRCGT group continues to exist as long as at least one member continues to be a member of the potential pooling group and to meet the conditions in TCGA92/S188A(3)(a) to (d).

*This was re-written for disposals from 6 April 2019 to Section 2B see CG10150