What did section 186 of the Taxation of Chargeable Gains Act 1992 originally do?

Section 186 originally created a deemed disposal of a company's assets when it ceased to be liable to UK taxation. This deemed disposal triggered any chargeable gains or allowable losses at the point the company left the UK tax net, ensuring gains accrued during UK residence were captured for tax purposes.

When was section 186 TCGA 1992 repealed and by which legislation?

Section 186 was repealed by the Finance Act 1994, specifically under section 251(9) and Schedule 26 Part VIII(1). The repeal took effect from 30 November 1993. Since that date, section 186 has had no legal force and its provisions cannot be relied upon for any purpose.

Does section 186 TCGA 1992 apply to a company migrating its tax residence after 30 November 1993?

No. Since section 186 was repealed with effect from 30 November 1993, it does not apply to any company ceasing UK tax residence after that date. A company migrating overseas after this date would have its position determined under other applicable provisions of the chargeable gains legislation, not section 186.

What provisions now govern companies ceasing to be within the charge to UK tax on chargeable gains?

Following the repeal of section 186, other provisions within the Taxation of Chargeable Gains Act 1992 and subsequent legislation govern companies ceasing to be within the UK tax charge. Tax advisers should consult the current legislative framework rather than relying on the repealed section 186 for guidance.

Taxation of Chargeable Gains Act 1992 section 186

Deemed disposal of assets on company ceasing to be liable to U.K. taxation

Section 186 previously dealt with the deemed disposal of assets when a company ceased to be liable to UK taxation, but this section has been fully repealed.

Section 186 originally addressed the tax consequences when a company stopped being subject to UK taxation.
The section was repealed by the Finance Act 1994, under section 251(9) and Schedule 26 Part VIII(1).
The repeal took effect from 30 November 1993.
As a result, section 186 no longer has any legal force and its provisions cannot be relied upon for any period after that date.

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