CG73844 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Companies: Special rules: Charging non-resident CGT gains of pooling groups

TCGA92/188C applies where member companies of an NRCGT group make non-resident CGT disposals between them. The intra-group transfer is disregarded at the time it takes place, and it does not therefore have any immediate consequence for non-resident CGT purposes. For the purposes of determining whether a non-resident CGT charge arises on a later disposal of the asset in question and determining the gain or loss accruing, the receiving company is treated as having acquired the asset when the transferring company acquired it, and having done everything that the previous owner did in relation to the asset. The later disposal will therefore be a non-resident CGT disposal for the receiving company.

TCGA92/S188D sets out rules for charging NRCGT gains accruing to members of an NRCGT group on non-resident CGT disposals in a tax year where there is a pooling arrangement. Liability falls on the “relevant body” for that tax year - the body constituted by all the companies that are members of the group at any time in the tax year. CGT is charged on the total chargeable NRCGT gains accruing in that tax year to members of the group, after deducting -

• any allowable NRCGT losses accruing in the year to any member of the group, and

• any allowable NRCGT losses accruing to any member of the group in any previous tax year (not earlier than 2015-16) that have not already been allowed as a deduction, and

• any allowable losses which accrued to any company which is a member of the group in the tax year on the disposal of UK residential property interests in any previous tax year (not earlier than 1965-66) that have not already been allowed as a deduction and are not included in the NRCGT losses above.

No other deductions are allowed.

TCGA92/S188E sets out various provisions concerning group losses that constitute a non-resident CGT loss accruing to a member of a non-resident CGT group. Relief may not be given under TCGA92 more than once in respect of such a loss (or part of it). Relief must not be given under TCGA92 if and to the extent that relief has been or may be given under other provisions of the Tax Acts; and no relief is to be given otherwise than in accordance with S188E.