Taxation of Chargeable Gains Act 1992 section Sch 5AAA para 11

Relationship to re-basing rules under Schedule 4AA for non-UK residents

Section Sch 5AAA para 11 deals with how the re-basing rules for non-UK residents interact with the election for an offshore collective investment vehicle to be treated as a partnership.

• Where an offshore collective investment vehicle has elected to be treated as a partnership, special re-basing rules apply to disposals by participants.
• Without this provision, certain disposals by participants could fall under the more complex re-basing calculations in Parts 3 or 4 of Schedule 4AA, which deal with assets that were already within the charge to tax before April 2019.
• This paragraph overrides that outcome by treating any such disposal as though it falls under Part 2 of Schedule 4AA, which covers indirect disposals and direct disposals that were not chargeable before 6 April 2019.
• The practical effect is a simpler re-basing treatment: the participant's asset is re-based to its April 2019 market value, rather than requiring a blended or split calculation reflecting earlier chargeability.