Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraphs 25–26

Notification to participants in relation to deemed disposals under paragraph 21 or 22

Section 25–26 requires fund managers of UK property rich collective investment vehicles to notify participants in writing when deemed disposals or deemed gains arise, and sets out penalties for failure to do so.

• When a deemed disposal occurs (under paragraph 21 or 22) or a deemed gain accrues (under paragraph 23), the relevant fund manager must notify the affected person in writing within 30 days.
• Failure to provide the required notification can result in a penalty of up to £3,000; where multiple fund managers share the duty, the combined penalty for all of them cannot exceed £3,000.
• HMRC must assess any penalty within 12 months of first becoming aware of the failure and must notify the person concerned.
• The person may appeal within 30 days of being notified of the penalty, stating the grounds of appeal; payment is due within 30 days of notification or, if appealed, within 30 days of the appeal's final determination or withdrawal.