CG13500 - Charge on shareholders in non-resident companies: gains made by non-resident companies
TCGA92/S13**
If a company is not resident in the UK and is not carrying on a trade in the UK through a permanent establishment there is normally no occasion of charge to Capital Gains Tax when it disposes of an asset (other than real property see CG73600+, CG73700+ and CG73920+) or otherwise realises a gain. However there can be an occasion of charge in certain circumstances for some other person who is resident or ordinarily resident* in the United Kingdom.
The general conditions are that
- a gain accrues to a non-resident company
- the non-resident company would be a close company if it was resident in the UK
- a person resident or ordinarily resident* in the UK is a direct or indirect participator in the company.
If the necessary conditions are satisfied then there is an occasion of charge for the person resident or ordinarily resident* in the UK when the company realises the gain. Subject to certain exemptions, an appropriate part of the gain is assessable on that person. See CG57200+ for further details.
* For 2013/14 and subsequent years ordinary residence does not need to be considered.
**This provision was re-written for disposals from 6 April 2019 see CG10150.