Taxation of Chargeable Gains Act 1992 section 166

Gifts to non-residents

Section 166 restricts the availability of gift relief on business assets where the person receiving the gift is either not resident in the UK or is effectively treaty-resident outside the UK.

• Gift relief under section 165 (which allows gains to be held over on gifts of business assets) is not available where the recipient of the gift is not resident in the UK
• An exception exists for gifts of UK residential property interests to non-residents, which are dealt with separately under section 167A
• Gift relief is also denied where the recipient is technically UK resident but is treated as resident in another country under a double taxation agreement, and would not be liable to UK tax on a gain if the asset were sold immediately after receiving it
• From the 2013–14 tax year onwards, the concept of ordinary residence was removed, so only residence status is relevant when applying this restriction