What does section 14F of the Taxation of Chargeable Gains Act 1992 do?

Section 14F allows certain non-resident persons to claim exemption from UK capital gains tax on indirect disposals of interests in UK property-rich entities that would otherwise be chargeable under section 14D. The exemption is not automatic and requires the taxpayer to make an active formal claim within the required time limits.

Who can make a claim for exemption under section 14F TCGA 1992?

Eligible claimants include specified categories of non-resident persons such as sovereign wealth funds, widely held investment vehicles, qualifying institutional investors, and entities benefiting from double taxation agreement protections. Eligibility depends on the characteristics of the person and the nature of their investment in the UK property-rich entity.

Is the exemption under section 14F applied automatically?

No, the exemption under section 14F is not automatic. The non-resident person must make an active claim. If no claim is submitted, the capital gains tax charge under section 14D applies in the normal way. Advisers should ensure eligibility is assessed and any claim is submitted within the required time limits.

When was section 14F introduced and why?

Section 14F was introduced by Finance Act 2019, Schedule 1, as part of wider reforms extending UK capital gains tax to non-residents disposing of interests in UK property-rich vehicles from April 2019. It provides a route to exemption for qualifying non-resident persons who would otherwise face a charge on indirect disposals of UK land.

Taxation of Chargeable Gains Act 1992 section 14F

Persons not chargeable under section 14D if a claim is made

Section 14F provides that certain non-resident persons can make a claim to be exempt from the capital gains tax charge on indirect disposals of UK property-rich entities that would otherwise apply under section 14D.

Certain categories of non-resident persons may claim exemption from the charge on indirect disposals of interests in UK property-rich entities under section 14D.
Eligible claimants include those who qualify by virtue of their status, such as certain institutional investors, sovereign wealth funds, or persons covered by double taxation agreements that exempt such gains.
A formal claim must be made in order for the exemption to apply — it is not automatic, and the taxpayer must actively elect for the relief.
This provision was introduced by the Finance Act 2019 as part of the wider reforms extending UK capital gains tax to non-residents disposing of interests in UK property-rich vehicles.

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