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HMRC internal manual

Capital Gains Manual

Non residents with a UK branch or agency

Individuals who are neither resident nor ordinarily resident* in the UK are normally outside the charge to Capital Gains Tax. But if at some time during the year of assessment they carry on a trade, profession or vocation in the UK through a branch or agency they will be within the charge to Capital Gains Tax as regards certain gains and deemed gains relating to that activity.

This charge does not apply to any person who is exempt from income tax on the profits of the branch or agency because of a double taxation agreement. Such persons are also exempt from Capital Gains Tax on the gains related to that activity (TCGA92/S10 (4)). There is guidance on the effects of double taxation agreements at INTM260000 onwards.

If an individual is within the charge to Capital Gains Tax in respect of a branch or agency activity charges can arise

  • on the disposal of assets related to the branch or agency activity, see CG25510


  • on the happening of certain events giving rise to deemed disposals; the cessation of the branch or agency activity or the transfer outside the UK of assets related to the activity, see CG25530.

  • For 2013/14 and subsequent years ordinary residence does not need to be considered.