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HMRC internal manual

Capital Gains Manual

Location of assets: general

Most of the provisions in the Capital Gains Tax legislation do not include any restrictions related to the location of an asset. Therefore the charge to Capital Gains Tax is not normally dependent on where in the world an asset is situated. The charge is not restricted to gains on assets situated in the United Kingdom nor are reliefs dependent on assets being situated in the UK. When dealing with such provisions it is not necessary to decide precisely where the asset is situated.

However in some circumstances it is necessary to determine the location of the asset. These circumstances include the application of

  • TCGA92/S10 (non UK residents with a UK branch or agency)
  • TCGA92/S10A (temporary non-residents)
  • TCGA92/S10B (non UK resident companies with a UK permanent establishment)
  • TCGA92/S12 (remittance basis of taxation, see CG12410)
  • TCGA92/S14B (Non-residents disposing of interests in UK residential property, see CG73700)
  • TCGA92/S25 (deemed disposals by non-residents)
  • TCGA92/S159 (the restriction to roll-over relief for non-residents).

For these purposes it is necessary to decide whether or not an asset is situated in the UK.

For Capital Gains Tax purposes the UK includes the territorial sea of the UK, TCGA92/S276 (1). The UK does not include the Isle of Man or the Channel Islands.