Taxation of Chargeable Gains Act 1992 section 184J

Asset subject to EU exit charge on becoming chargeable asset

Section 184J prevents double taxation where an asset has already been subject to an EU exit charge in another Member State before coming within the scope of UK corporation tax on chargeable gains.

• Where an asset becomes chargeable to UK corporation tax and the company also faces an EU exit charge from another Member State, the asset is treated as acquired at market value at that point
• The triggering events are either the company becoming UK resident or a non-UK resident company beginning to hold the asset for a UK trade through a permanent establishment
• By rebasing the asset to market value at the time of the EU exit charge, any gain that accrued before that date is excluded from UK tax
• The relief only applies where the other state's exit charge was levied in accordance with the EU Anti-Tax Avoidance Directive (Directive 2016/1164)