Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraphs 17–18

Persons with UK land ceasing to be UK resident after 5 April 2019

Paragraphs 17 and 18 deal with what happens when settlement trustees or a company leave UK residence after 5 April 2019 and later dispose of UK land assets they held on that date.

• Where settlement trustees or a company cease to be UK resident after 5 April 2019 and later dispose of an asset that is a direct or indirect disposal of UK land, special rules apply.
• The normal rebasing options in Parts 2, 3 and 4 of Schedule 4AA do not apply to these disposals — instead the gains are calculated without those rebasing adjustments.
• For trustees, the asset is excluded from the deemed disposal that would normally be triggered under section 80(2) when trustees leave the UK, so there is no automatic exit charge on that asset.
• For companies, the asset is similarly excluded from the deemed disposal rules under section 185(2) and (3), removing the exit charge that would otherwise arise when a company migrates out of the UK.