Income Tax Act 2007 section 809VN

Order of disposals etc.

Section 809VN establishes the rules for determining the order in which disposals of investments are treated as taking place when a remittance basis user has made multiple investments in the same company or group, including situations where both qualifying and non-qualifying investments are held.

• Where multiple qualifying investments have been made in the same company or group, all investments and holdings are treated as a single qualifying investment and single holding for the purpose of determining whether income or gains are treated as remitted to the UK.
• Any disposal from that deemed single holding is treated as affecting investments funded by money later designated as TRF capital first, and then the remaining qualifying investments on a first in, first out basis — meaning the earliest investment is treated as disposed of first.
• Where a relevant person holds both qualifying and non-qualifying investments in the same company or group, all are pooled into a single deemed holding, and any disposal is treated as a disposal of qualifying investments (TRF capital–funded ones first, then the rest) before any non-qualifying investments are affected.
• These ordering rules apply regardless of whether the various investments are held by the same relevant person or by different relevant persons.