Taxation of Chargeable Gains Act 1992 section 14

Non-resident groups of companies

Section 14 deals with the circumstances in which a non-UK resident company can be charged to capital gains tax on disposals of UK assets, specifically where that company is part of a group and the gain is attributable to assets that have been transferred within the group to avoid a UK tax charge.

• Where a non-UK resident company disposes of a UK asset, a chargeable gain may arise if the asset (or its value) was previously transferred to that company from another group member that would have been subject to UK tax on the disposal.
• The provision targets arrangements where assets are shifted within a corporate group so that the eventual disposal is made by a non-resident company, thereby attempting to place the gain outside the scope of UK taxation.
• The section applies to groups of companies as defined for capital gains purposes, and traces the history of asset ownership within the group to determine whether a UK tax charge should arise.
• These rules were amended by the Finance Act 2019 as part of broader reforms to ensure that gains on UK property and certain other UK assets made by non-residents are brought within the UK tax net.

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