Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraph 44

Withholding of amounts on account of capital gains tax

Paragraph 44 gives the Treasury power to make regulations allowing managers of collective investment vehicles to elect to handle the capital gains tax or corporation tax liability arising from indirect disposals of UK land on behalf of participants in the vehicle.

• The Treasury may create regulations enabling fund managers to opt to meet participants' capital gains tax or corporation tax liabilities on indirect disposals of UK land.
• Regulations may provide for a simplified method of calculating the participant's tax liability on those disposals.
• Fund managers (or other specified persons) may be authorised to deduct amounts on account of capital gains tax from sums otherwise payable to the participant.
• Regulations may set out when deducted amounts must be paid to HMRC and the extent to which those payments satisfy the participant's tax liability.