Part 14Income tax liability: miscellaneous rules

F1Chapter A1Remittance basis

Exempt property relief

F2809YDChargeable gains accruing on sales of exempt property

(1)

This section applies to an individual (“P”) if—

(a)

a chargeable gain (but not a loss) accrues to a person on a sale of exempt property,

(b)

but for section 809YA, section 809Y(1) would have applied to the property by virtue of the sale, and

(c)

P is either—

(i)

the person to whom the gain accrues, or

(ii)

a person to whom a part of the gain is treated as accruing under F3section 3 of TCGA 1992 (members of non-resident companies).

(2)

The relevant UK gain is to be treated for the purposes of this Chapter as if—

(a)

it were a foreign chargeable gain of P, and

(b)

in the case of section 809E, it were not part of P's UK income and gains.

(3)

Accordingly, if section 809F applies to P for the applicable tax year F4..., the relevant UK gain is charged in accordance with F5paragraph 1 of Schedule 1 to TCGA 1992 as if it were a foreign chargeable gain.

(4)

The relevant UK gain is—

(a)

in a case falling within subsection (1)(c)(i), the gain accruing to P,

(b)

in a case falling within subsection (1)(c)(ii), the part of the gain treated as accruing to P.

(5)

The applicable tax year is —

(a)

if F6section 1M of TCGA 1992 (temporary non-residents) applies in P's case and the relevant UK gain is within subsection (2) of that section, F7the tax year that consists of or includes the period of return as defined in that section,

(b)

otherwise, the tax year in which the relevant UK gain accrues.

(6)

In applying this Chapter to the relevant UK gain—

(a)

treat the amount of any gains mentioned in section 809Q(4)(e) contained in the disposal proceeds by virtue of section 809YC(4) as increased by the amount of the relevant UK gain,

(b)

disregard section 809U, and

(c)

anything done in relation to any part of the disposal proceeds before the part is taken offshore or used to make a qualifying investment (or both) does not count as a remittance to the United Kingdom of any of the relevant UK gain.

(7)

The relevant UK gain is to be treated for the purposes of the following provisions of TCGA 1992 as if it F8accrued on the disposal of a foreign asset (within the meaning of Schedule 1 to TCGA 1992) —

F9(a)

section 1M,

(b)

section 3D, and

(c)

Schedule 1.

(8)

This section has effect despite F10section 3D(2) of TCGA 1992.

(9)

This section does not apply with respect to a chargeable gain if P gives notice to Her Majesty's Revenue and Customs under this subsection.

(10)

A notice under subsection (9)—

(a)

must be in writing and must identify the gain in question,

(b)

must be given on or before the first anniversary of the 31 January following the applicable tax year, and

(c)

may not be revoked after that first anniversary.