Taxation of Chargeable Gains Act 1992 section 275A

Location of certain intangible assets

Section 275A provides rules for determining whether certain intangible assets — such as rights enforceable by legal action, futures and options — are situated in the United Kingdom for capital gains tax purposes, where no other provision already determines their location.

• An intangible asset that is subject to UK law when created is treated as situated in the UK at all times.
• For futures and options not subject to UK law at creation, the location is determined by examining their underlying subject matter through two successive tests.
• Under the first test, if the underlying subject matter includes an intangible asset subject to UK law at creation, the future or option is treated as subject to UK law and therefore situated in the UK at all times.
• Under the second test, if the underlying subject matter includes any asset situated in the UK (including unissued shares or debentures of a UK-incorporated company), the future or option is treated as situated in the UK whenever that underlying asset is so situated.