Taxation of Chargeable Gains Act 1992 section 14H

Section 14F: arrangements for avoiding tax

Section 14H provides an anti-avoidance rule that prevents taxpayers from using arrangements to circumvent the temporary non-residence provisions in section 14F, which charge gains on certain disposals made during periods of temporary non-residence.

• Where arrangements have been made with a main purpose of avoiding or reducing a charge to capital gains tax under the temporary non-residence rules in section 14F, those arrangements are to be disregarded when determining whether a charge arises.
• This anti-avoidance rule ensures that any scheme or structure designed to sidestep the temporary non-residence provisions cannot be used to escape the tax charge that would otherwise apply.
• The provision was introduced by Finance Act 2019 as part of a package of reforms to the taxation of chargeable gains for individuals who become temporarily non-resident in the UK.
• In practice, HMRC can look through any artificial steps taken to avoid a section 14F charge, meaning the tax consequence is determined as if the avoidance arrangements had not been put in place.

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