What did section 188C of the Taxation of Chargeable Gains Act 1992 provide?

Section 188C provided no-gain, no-loss treatment for transfers of assets between companies within the same NRCGT group. This meant intra-group transfers of UK residential property by non-UK resident companies did not trigger an immediate capital gains tax charge, mirroring established UK principles for genuine group reorganisations.

When was section 188C repealed and why?

Section 188C was repealed by the Finance Act 2019 as part of a broader reform extending UK taxation on property gains to all non-UK residents and all types of UK land. The repeal took effect for capital gains tax from the 2019–20 tax year and for corporation tax for accounting periods beginning on or after 6 April 2019.

What replaced the NRCGT group transfer rules after repeal?

The new regime contained in Schedule 1 to the Finance Act 2019 replaced the old NRCGT provisions with a more comprehensive framework. Intra-group transfers of UK land by non-resident companies now fall within the broader provisions of the Taxation of Chargeable Gains Act 1992 as amended, including standard group relief rules where applicable.

How did section 188C work in practice for non-resident corporate groups?

When two non-UK resident companies in the same NRCGT group transferred a relevant UK residential property asset, section 188C treated the transfer on a no-gain, no-loss basis. The base cost of the property carried over to the receiving company, so no NRCGT charge arose at the point of the intra-group transfer.

Taxation of Chargeable Gains Act 1992 section 188C

Transfers within an NRCGT group

Section 188C dealt with the treatment of asset transfers between companies within a non-resident capital gains tax (NRCGT) group, allowing certain intra-group transfers to take place without triggering an immediate charge to tax.

This section was part of a suite of provisions (sections 188A–188K) introduced by the Finance Act 2015 to bring non-UK resident persons within the scope of capital gains tax on disposals of UK residential property from 6 April 2015 onwards.
Section 188C specifically addressed transfers of assets between companies that were members of the same NRCGT group, providing relief so that such intra-group transactions could be treated as taking place on a no-gain, no-loss basis.
The entire set of NRCGT group provisions, including this section, was removed from the legislation by the Finance Act 2019 as part of a broader reform that extended UK tax on property gains to all non-UK residents and all types of UK land, not just residential property.
The repeal took effect for capital gains tax purposes from the 2019–20 tax year onwards, and for corporation tax purposes for accounting periods beginning on or after 6 April 2019, with the new regime under Schedule 1 to the Finance Act 2019 replacing the old NRCGT rules.

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