Taxation of Chargeable Gains Act 1992 Schedule 1A paragraph 4

Meaning of "qualifying assets"

Section 4 defines which assets of a company count as "qualifying assets" for the purpose of determining whether an asset derives at least 75% of its value from UK land, and sets out rules for excluding assets that are matched to related party liabilities.

• As a general rule, all of a company's assets are qualifying assets unless they are matched to a related party liability.
• An asset is matched to a related party liability where it represents a right under a transaction (such as a loan or derivative) that entitles the company to require a related or connected person to meet a liability under that transaction.
• Interests in UK land always count as qualifying assets, even if they are matched to a related party liability.
• Liabilities for this purpose include contingent liabilities, such as those arising from guarantees, indemnities, or other forms of financial assistance.