CG73863 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Interaction between Non-Resident CGT and ATED-related CGT: Computation, broad principles

ATED-related CGT works by dividing gains accruing on a disposal into two parts - the ATED-related gain and a ‘non-ATED-related gain’. The ATED-related gain is chargeable to ATED-related CGT under TCGA92/S2B*. The non-ATED-related gain may be subject to tax under the other charging provisions of the Taxes Acts, for example CT in the case of a UK resident company, or CGT under TCGA/S86 or 87 in the case of settlors or beneficiaries of a non-UK trust, or CGT under TCGA92/S13* in the case of participators in certain non-resident companies. Alternatively, there may be no UK tax liability at all on the non-ATED-related gain.

Where a disposal is potentially chargeable to both ATED-related CGT and Non-Resident CGT, the ATED-related gain is calculated first and takes priority over Non-Resident CGT. Any remaining gain may be subject to Non-resident CGT. For guidance on how to calculate the ATED-related gain, see CG73600+.

Where the property disposed of was held on both 5 April 2013 and 5 April 2015, the legislation provides for the computation of notional gains and losses which would accrue as a result of deemed disposals and reacquisitions at market value on those dates.

The rules for determining ATED-related, non-ATED-related and non-resident CGT gains apply independently to these notional gains, and the ATED-related, non-ATED-related, non-resident CGT and other gains so computed are all to be treated as accruing at the time of the actual disposal.

*These sections were re-written for disposals from 6 April 2019 see CG10150