Taxation of Chargeable Gains Act 1992 section 84

Acquisition by dual resident trustees

Section 84 prevents roll-over relief from applying where settlement trustees who are dual resident acquire new business assets that would escape UK capital gains tax under a double taxation treaty.

• Roll-over relief under section 152 is denied where new assets are acquired by trustees of a settlement who are dual resident — that is, UK resident but treated as resident in another territory under a double taxation agreement.
• The denial applies only where the assets fall within a category specified in the relevant double taxation arrangements.
• The test is whether, if the trustees sold the assets immediately after buying them, the double taxation treaty would treat them as not liable to UK tax on any resulting gains.
• "New assets" carries the same meaning as in section 152, referring to the replacement assets acquired in connection with a roll-over relief claim.