Taxation of Chargeable Gains Act 1992 Schedule BA1 paragraph 2

"Interest in non-UK land"

Schedule BA1 paragraph 2 defines what constitutes an "interest in non-UK land" for the purposes of determining whether a disposal of an asset gives rise to a UK property-related gain or loss.

• An interest in non-UK land includes an estate, interest, right or power in or over land situated outside the United Kingdom, as well as the benefit of any obligation or restriction affecting the value of such an estate, interest, right or power.
• This definition mirrors the equivalent concept of an interest in UK land but applies to land located outside the UK.
• The provision was introduced by the Finance Act 2019 as part of a broader framework extending UK capital gains tax rules to disposals of interests in property-rich entities by non-UK residents.
• The definition is relevant when assessing whether an entity derives its value from land and, if so, whether that land is situated in the UK or elsewhere, which in turn determines the chargeable gains treatment of disposals involving that entity.