Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraph 3

Meaning of a collective investment vehicle being "UK property rich" etc

Section 3 of Schedule 5AAA defines what it means for a collective investment vehicle or a company to be "UK property rich" at any given point in time, using a 75% UK land value threshold.

• A collective investment vehicle or company is "UK property rich" if at least 75% of its value derives from UK land at the relevant time.
• The test is carried out by assuming a hypothetical disposal of a right or interest in the entity at the relevant time and checking whether that disposal would meet the 75% UK land value threshold.
• If the collective investment vehicle is not already a company, it is treated as if it were one for the purposes of applying this test.
• The trading land exemption and the exemption for certain disposals under the same arrangements (found in paragraphs 5 and 6 of Schedule 1A) are deliberately excluded from this assessment.