Taxation of Chargeable Gains Act 1992 section 3F

Non-resident groups of companies

Section 3F extends certain UK group company rules to non-resident companies that belong to a non-resident group, for the purposes of attributing gains to UK resident individuals under section 3.

• Several UK group relief provisions (covering intra-group transfers, trading stock transfers, rollover relief for replacement of business assets, and degrouping charges) are applied, with modifications, to non-resident group companies.
• The modifications generally broaden the scope of these provisions so they work for non-resident groups — for example, references to "a group of companies" are replaced with "a non-resident group of companies" and references to "a company" become "a non-resident company."
• A non-resident company is simply a company that is not resident in the United Kingdom; a non-resident group is either an entire group where no member is UK-resident, or, where a group has a mixture of UK-resident and non-UK-resident members, the non-UK-resident members only.
• The definition of "group" follows the standard meaning in section 170, which sets out the principal company and 75% subsidiary relationships used throughout the group provisions of the Act.