CG73849 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Companies: Special rules: Obligations of "responsible members" and "representative company"

TCGA92/S188H provides that where the terms of TCGA92 or TMA70 require or authorise anything to be done by the “relevant body” of a non-resident CGT group, the obligation or power falls on the “responsible members” of the group for a tax year. The “responsible members” are all the companies that are members of the group at any time in that tax year, and any companies that have subsequently become members of the group.

TCGA92/S188I makes clear that where the responsible members of an non-resident CGT group are liable to pay tax, interest or any other amount on behalf of the group, those members are each jointly and severally liable to make those payments.

TCGA92/S188J provides that where the terms of TCGA92 or TMA70 require or authorise anything to be done by the “relevant body” of a non-resident CGT group, the obligation or power may instead be discharged by the “representative company” for the time being. The “representative company” is a member of the non-resident CGT group of companies which is nominated by all the members of the group. Nominations are only valid if notified in writing to HMRC.

TCGA92/S188J expressly mentions that making declarations that non-resident CGT returns are correct and complete is one of the duties imposed on the “relevant body” that may be carried out by the representative company. This links with TMA70/S12ZB, which states that the “relevant body” of an NRCGT group has responsibility for making NRCGT returns and providing the necessary declaration that they are correct and complete.