Taxation of Chargeable Gains Act 1992 section 168A

Postponing held-over gain: interests in UK land

Section 168A allows a transferee who is deemed to have disposed of an interest in UK land on becoming non-UK resident to elect to postpone the held-over gain until the land is actually sold.

• Where a gift relief claim has been made and the recipient of the asset later becomes non-UK resident, a deemed disposal normally triggers the held-over gain immediately under section 168(1)
• The transferee can elect under section 168A to postpone that held-over gain so that it does not accrue at the time of the deemed disposal
• The postponed gain instead accrues when the transferee subsequently disposes of all or part of the UK land interest, in whole or in the corresponding proportion
• The postponed gain is treated as additional to any gain or loss that actually arises on the subsequent disposal