Corporation Tax Act 2009

861 Treatment of postponed gain on subsequent realisation

(1) This section applies if A realises the asset to which section 860 applies before the end of the period of 6 years after the date on which it ceases to be UK resident.

(2) B must bring into account for tax purposes—

(a) a credit equal to the postponed gain, or

(b) in the case of a part realisation, a credit equal to the appropriate proportion of the postponed gain.

(3) The appropriate proportion is—

where—

• MVB is the market value of the asset immediately before the part realisation, and

• MVA is the market value of the asset immediately after the part realisation.

(4) Subsection (2) does not apply—

(a) so far as the postponed gain has already been brought into account on a previous part realisation, or

(b) if the postponed gain has already been brought into account under section 862.

(5) A credit brought into account by B under this section is treated as a non-trading credit for the purposes of Chapter 6 (how credits and debits are given effect).