Taxation of Chargeable Gains Act 1992 section 79B

Attribution to trustees of gains of non-resident companies

Section 79B ensures that where trustees of a settlement are participators in certain close companies (or companies that would be close companies if UK-resident), chargeable gains of non-UK resident companies can be attributed to those trustees and brought into the UK tax charge, regardless of any double taxation relief arrangements.

• The section applies where settlement trustees are participators in a close company, or in a non-UK resident company that would be close if it were UK-resident.
• Double taxation relief arrangements cannot prevent a tax charge arising from the attribution of a non-UK resident company's chargeable gains to the trustees.
• Where a gain accrues to a non-UK resident company and is attributed to a UK-resident close company that is itself exempt from corporation tax on the gain under a double tax treaty, the legislation treats that UK-resident company as if it were non-UK resident, so the gain can instead be attributed to the trustees.
• Any other UK-resident company in the chain that would otherwise block the attribution to the trustees is similarly treated as non-UK resident for these purposes.