Taxation of Chargeable Gains Act 1992 section 13A

Section 13(5): interpretation

Section 13A provides guidance on how to interpret the rule in section 13(5) that determines the proportion of a non-resident company's chargeable gains attributable to a UK participator.

• Section 13A was inserted by the Finance Act 2019 to clarify how section 13(5) of TCGA 1992 should be interpreted when apportioning gains of non-resident companies to UK participators.
• Section 13(5) determines the proportion of a non-resident company's chargeable gains that can be attributed to a UK-resident participator, based on the extent of that person's interest in the company.
• The interpretive rules in section 13A ensure that the apportionment mechanism operates correctly, providing clarity on how a participator's proportionate interest is to be calculated.
• This provision forms part of the wider framework introduced by the Finance Act 2019 (Schedule 1, paragraph 2) which reformed the taxation of gains arising to non-resident closely held companies with UK participators.

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