Taxation of Chargeable Gains Act 1992 paragraphs 13–15, Schedule 5AAA

Qualifying conditions and information provided to HMRC

Section 13–15 of Schedule 5AAA sets out the qualifying conditions that a collective investment vehicle or company must meet to benefit from the exemption for UK property rich collective investment vehicles, and the information that must be provided to HMRC when making and maintaining an election.

• A collective investment vehicle can qualify by meeting genuine diversity of ownership, by being listed and non-close, or by satisfying the UK tax condition combined with the non-close condition
• A company that is not itself a collective investment vehicle can qualify if it meets the UK tax and non-close conditions, or if the scheme directly owning it has genuinely diverse ownership
• The UK tax condition requires that no more than 25% of hypothetical disposal proceeds would escape UK tax solely because of double taxation treaties
• An election must be accompanied by specified disposal information, and ongoing reporting to HMRC is required for each period of account — failure to comply without reasonable excuse can lead to revocation of the election