Taxation of Chargeable Gains Act 1992 section 1D

Non-UK residents: assets deriving 75% of value from UK land etc.

Section 1D directs how to determine whether an asset disposed of by a non-UK resident derives at least 75% of its value from UK land and whether the person disposing of it holds a substantial indirect interest in that land.

• Two key tests must be applied when a non-UK resident disposes of an asset connected to UK land: the 75% value test and the substantial indirect interest test.
• The 75% value test asks whether the asset being disposed of derives at least 75% of its value from UK land.
• The substantial indirect interest test asks whether the person making the disposal holds a substantial indirect interest in the UK land at the time of disposal.
• The definition of "substantial" used for these purposes is specific to this context and does not affect how that term is interpreted elsewhere in the legislation.