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Legislation
Taxation of Chargeable Gains Act 1992

Crossheading Territorial scope of charge

  • Section 1A Territorial scope
  • Section 1B Non-UK residents: UK branch or agency
  • Section 1C Non-UK residents: disposing of an “interest in UK land”
  • Section 1D Non-UK residents: assets deriving 75% of value from UK land etc
  1. Territorial scope of charge
  2. Territorial scope

Section 1A | Territorial scope F1

From legislation.gov.uk

(1)A person who is UK resident for a tax year is chargeable to capital gains tax on chargeable gains accruing to the person in the tax year on the disposal of assets wherever situated.

(2)In the case of individuals who are UK resident for a tax year, see also—

(za)Schedule D1 (relief for new residents on foreign gains),F2

(a)Schedule 1 (foreign gains accruing to individuals to whom the remittance basis applied),F3

(b)section 1G (cases where the tax year is a split year),

(c)sections 1M and 1N (temporary periods of non-residence),

(d)Chapter 3 (gains of non-UK resident close companies attributed to individuals), and

(e)sections 86, 87, ... and 89(2) (gains of non-UK resident trustees attributed to individuals).F4

(3)A person who is not UK resident for a tax year is chargeable to capital gains tax on chargeable gains accruing to the person in the tax year on the disposal of—

(a)assets situated in the United Kingdom that have a relevant connection to the person's UK branch or agency and are disposed of at a time when the person has that branch or agency (see section 1B),

(b)assets not within paragraph (a) that are interests in UK land (see section 1C), and

(c)assets (wherever situated) not within paragraph (a) or (b) that derive at least 75% of their value from UK land where the person has a substantial indirect interest in that land (see section 1D and Schedule 1A).

(4)For the purposes of this Chapter a person is “UK resident” for a tax year if the person is resident in the United Kingdom during any part of the tax year.

(5)For the relevant residence rules—

(a)in the case of individuals, see Schedule 45 to the Finance Act 2013 (which provides that individuals meeting the applicable tests for a tax year are taken to be resident for the whole of the year),

(b)in the case of the personal representatives of deceased individuals, see section 62(3), and

(c)in the case of trustees of settlements, see section 69.

Notes

  1. F1

    Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2

  2. F2

    S. 1A(2)(za) inserted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 39(3)(11)

  3. F3

    Word in s. 1A(2)(a) substituted (for the tax year 2025-26 and subsequent tax years) by Finance Act 2025 (c. 8), s. 40(4), Sch. 9 para. 2(2)

  4. F4

    Words in s. 1A(2)(e) omitted (for the tax year 2025-26 and subsequent tax years) by virtue of Finance Act 2025 (c. 8), Sch. 12 paras. 52, 70(1)

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