What was the purpose of section 191 of the Taxation of Chargeable Gains Act 1992?

Section 191 allowed HMRC to recover capital gains tax owed by a non-resident company from another member of the same corporate group or from a controlling director. It addressed the practical difficulty of enforcing UK tax debts against companies based overseas that had made chargeable gains on UK assets.

Is section 191 TCGA 1992 still in force in the United Kingdom?

No. Section 191 was effectively removed from the legislation by the Finance Act 2000, section 102 and Schedule 29, paragraph 9(1). It has no operative effect for any chargeable gains accruing on or after 1 April 2000, meaning it is irrelevant for all current tax periods.

From whom could HMRC recover tax under section 191 TCGA 1992?

Under section 191, HMRC could recover capital gains tax from two categories of connected parties: another company within the same corporate group as the non-resident company, or a director who controlled the non-resident company. This provided alternative routes for collecting tax that might otherwise go unpaid.

Can section 191 TCGA 1992 still apply to any historical tax matters?

Section 191 may still be relevant for historical queries relating to chargeable gains that arose before 1 April 2000. For any disposal occurring before that date, HMRC could have used section 191 to pursue the tax liability from a UK group member or controlling director of the non-resident company.

Taxation of Chargeable Gains Act 1992 section 191

Tax on non-resident company recoverable from another member of group or from controlling director

Section 191 previously allowed HMRC to recover capital gains tax owed by a non-resident company from other UK group members or controlling directors, but was effectively removed from the legislation for gains arising on or after 1 April 2000.

Section 191 provided a mechanism for recovering tax on chargeable gains from non-resident companies that might otherwise be difficult to collect.
The tax could be recovered from another member of the same corporate group or from a controlling director of the non-resident company.
The section was effectively omitted by the Finance Act 2000, section 102 and Schedule 29, paragraph 9(1).
The removal applies to all chargeable gains accruing on or after 1 April 2000, meaning the provision has no practical effect for any current tax period.

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