Taxation of Chargeable Gains Act 1992 section 187B

Postponing gain or loss under section 185(2): interests in UK land

Section 187B allows gains or losses on interests in UK land that arise from a deemed disposal when a company leaves the UK to be postponed until the property is actually sold, rather than being charged at the point the company ceases to be UK resident.

• When a company ceases to be UK resident, any gain or loss on its interests in UK land from the deemed disposal under section 185(2) does not crystallise at that point but is instead deferred.
• The deferred gain or loss is triggered when the company subsequently disposes of the whole or a corresponding part of the UK land interest, and is treated as accruing at that later date.
• Any deferred gain or loss is added to whatever gain or loss actually arises on the subsequent disposal, so both amounts are recognised together.
• A company can elect out of this deferral within two years of the deemed disposal, meaning the gain or loss would instead accrue at the time the company ceases to be UK resident.