Section 809Y | Property that ceases to be exempt property treated as remitted ^F1

(1)Property that ceases to be exempt property is to be treated as having been remitted to the United Kingdom at the time it ceases to be exempt property.^F1

(2)Property ceases to be exempt property in any of the following cases.^F1F2

(3)The first case is where the whole or part of the exempt property is sold, or otherwise converted into money, whilst it is in the United Kingdom.^F1

(4)The second case is where the property—^F1

(a)is exempt property only because it meets one or more of the relevant rules,^F1

(b)ceases to meet that rule, or all of those rules, whilst it is in the United Kingdom, and^F1

(c)does not meet any other relevant rule.^F1

(4A)Where exempt property has been lost, stolen or destroyed, the first and second cases do not apply in relation to the property during any period—^F1F3

(a)beginning with the time at which it was lost, stolen or destroyed, and^F1F3

(b)(if lost or stolen) ending with the time at which it is recovered.^F1F3

(4B)The third case is where a compensation payment is released in respect of exempt property that has been lost, stolen or destroyed.^F1F3

(5)In this section—^F1

“money” includes—

(a)a traveller's cheque,

(b)a promissory note,

(c)a bill of exchange, and

(d)any other—

(i)instrument that is evidence of a debt, or

(ii)voucher, stamp or similar token or document which is capable of being exchanged for money, goods or services, and

“relevant rule” means—

(a)the public access rule,

(b)the personal use rule,

(c)the repair rule, and

(d)the temporary importation rule.

(6)Subsection (1) does not apply to property that ceases to be exempt property by virtue of the first or second case if—^F1F4F5

(a)the property, or anything into which it is converted, is used by a relevant person to make a qualifying investment within the period of 45 days beginning with the day on which it ceased to be exempt property, and^F1F4

(b)the remittance basis user makes a claim for relief under this subsection on or before the first anniversary of the 31 January following the tax year in which the property ceases to be exempt property.^F1F4

(7)The reference in subsection (6)(a) to anything into which property is converted is—^F1F4

(a)if the property is disposed of, the disposal proceeds, and^F1F4

(b)if the property is converted into money in some other way, the money into which it is converted,^F1F4

(including where the disposal or conversion occurs after the property ceases to be exempt property).

(8)If subsection (1) does not apply by virtue of subsection (6)—^F1F4

(a)the property (or thing into which it was converted) used to make the investment is to be treated as containing or deriving from an amount of each kind of income and gain mentioned in section 809Q(4)(a) to (h) equal to the fixed amount,^F1F4

(b)the income or gains treated under section 809X as not remitted to the United Kingdom continue to be treated as not remitted to the United Kingdom even though the property has ceased to be exempt property, and^F1F4

(c)the business investment provisions apply to the income and gains as they apply to income or gains treated under section 809VA(2) as not remitted to the United Kingdom.^F1F4

(9)“The fixed amount” is the amount of that kind of income or gain contained in the property when it was brought to, or received or used in, the United Kingdom (as mentioned in section 809X).^F1F4

(10)If the investment is made using more than just the property (or thing into which it was converted), treat only the part made using the property (or thing into which it was converted) as “the investment” for the purposes of the business investment provisions.^F1F4