Taxation of Chargeable Gains Act 1992 section 159

Schedule 7AB paragraph 6

Section 159, as supplemented by Schedule 7AB paragraph 6, deals with the application of roll-over relief on the replacement of business assets in the context of gains accruing to non-resident companies within the scope of UK taxation.

• Paragraph 6 of Schedule 7AB modifies the operation of roll-over relief under section 159 where a non-resident company disposes of business assets and reinvests in replacement assets.
• The provision was amended by Finance Act 2011, Schedule 10, paragraph 5(c), to align the rules with wider changes to the taxation of non-resident companies on chargeable gains.
• The effect is to ensure that roll-over relief is only available where both the old and the new assets fall within the charge to UK tax on chargeable gains, preventing relief from sheltering gains that would otherwise be taxable in the UK.
• This rule ensures consistency between the treatment of resident and non-resident companies when claiming roll-over relief on the replacement of qualifying business assets.

---