Taxation of Chargeable Gains Act 1992 section 14A

Section 13: non-UK domiciled individuals

Section 14A modifies the application of section 13 (attribution of gains to members of non-resident close companies) where the participator is an individual who is not domiciled in the United Kingdom.

• Section 14A applies where gains of a non-resident close company would otherwise be attributed to an individual participator under section 13, but that individual is not UK-domiciled.
• For non-UK domiciled individuals, gains attributed under section 13 are treated as foreign chargeable gains, meaning they are only taxable if and when they are remitted to the United Kingdom.
• This provision aligns the treatment of attributed gains from non-resident close companies with the remittance basis of taxation that is available to non-UK domiciled individuals.
• The rule was introduced by Finance Act 2019, Schedule 1, paragraph 2, and ensures that non-domiciled individuals are not placed in a worse position regarding attributed company gains than they would be if they had made the gains directly.

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