Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraph 7B

Offshore collective investment vehicles (other than UK feeder vehicles) that meet the conditions in paragraph 7(2)(a) and (b)

Section 7B provides an exemption from the non-UK resident disposal rules for certain offshore collective investment vehicles that hold small stakes in UK property rich vehicles and are not acting as feeder funds.

• An offshore collective investment vehicle (CIV) that meets specific qualifying conditions can be exempt from the normal non-UK resident disposal rules when it disposes of interests in UK property rich vehicles
• The exemption only applies where the offshore CIV is not a "UK feeder vehicle" — defined as a vehicle where at least 85% of its asset value derives from units in a single UK property rich CIV
• The offshore CIV must not hold a 10% or greater investment in the UK property rich vehicle immediately before the disposal, with the 10% threshold tested using a modified version of the rules in Schedule 1A
• The asset disposed of must be a right or interest in a collective investment vehicle that is treated as a company and is UK property rich

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