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Legislation
Taxation of Chargeable Gains Act 1992

Chapter II Gifts of business assets

  • Section 165 Relief for gifts of business assets.
  • Section 165A Meaning of “holding company”, “trading company” and “trading group”
  • Section 166 Gifts to non-residents.
  • Section 167 Gifts to foreign-controlled companies.
  • Section 167A Gifts of direct or indirect interests in UK land to non-residents
  • Section 168 Emigration of donee.
  • Section 168A Postponing held-over gain: interests in UK land
  • Section 169 Gifts into dual resident trusts.
  • Section 169A Cessation of trade by limited liability partnership
  • Section 169B Gifts to settlor-interested settlements etc
  • Section 169C Clawback of relief if settlement becomes settlor-interested etc
  • Section 169D Exceptions to sections 169B and 169C
  • Section 169E Meaning of “settlor” in sections 169B to 169D and 169G
  • Section 169F Meaning of “interest in a settlement” in sections 169B to 169D
  • Section 169G Meaning of “arrangement” in sections 169B to 169E and information power
  1. Chapter II · Gifts of business assets
  2. Gifts to foreign-controlled companies.

Section 167 | Gifts to foreign-controlled companies.

From legislation.gov.uk

(1)Subject to section 167A, section 165(4) shall not apply where the transferee is a company which is within subsection (2) below.F1

(2)A company is within this subsection if it is controlled by a person who, or by persons each of whom—

(a)is not resident in the United Kingdom, andF2

(b)is or is connected with the person making the disposal.F3

(3)For the purposes of subsection (2) above, a person who (either alone or with others) controls a company by virtue of holding assets relating to that or any other company and who is resident in the United Kingdom is to be regarded as not resident there if—F4

(a)he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

(b)by virtue of the arrangements he would not be liable in the United Kingdom to tax on a gain arising on a disposal of the assets.

Notes

  1. F1

    Words in s. 167(1) substituted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 25

  2. F2

    Words in s. 167(2)(a) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 100(2)

  3. F3

    Words in s. 167(2)(b) inserted (with effect in accordance with s. 41(2) of the amending Act) by Finance Act 2021 (c. 26), s. 41(1)

  4. F4

    Words in s. 167(3) substituted (with effect in accordance with Sch. 46 para. 112 of the amending Act) by Finance Act 2013 (c. 29), Sch. 46 para. 100(3)

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