Taxation of Chargeable Gains Act 1992 section 188G

Company ceasing to be a member of an NRCGT group

Section 188G dealt with the tax consequences when a company left a non-resident capital gains tax (NRCGT) group, potentially triggering a chargeable gain on previously transferred assets — but this provision has now been removed from the legislation.

• Section 188G was part of a set of rules (sections 188A–188K) introduced in April 2015 to impose capital gains tax on non-UK resident companies disposing of UK residential property
• The section addressed what happened when a company that had received an asset via an intra-group transfer subsequently left the NRCGT group, broadly treating the company as if it had disposed of and reacquired the asset at market value
• This degrouping charge mirrored similar provisions for UK-resident groups, ensuring that gains deferred through group transfers were not permanently avoided when a company exited the group
• The entire set of NRCGT group provisions (sections 188A–188K) was repealed by the Finance Act 2019, replaced by a broader regime taxing all non-UK residents on disposals of UK property from April 2019 onwards

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