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HMRC internal manual

Capital Gains Manual

No gain/no loss transfers in groups: non-UK resident companies


From 1 April 2000 a capital gains group will include non-UK resident members of the group. TCGA92/S171(1A) ensures that the no gain/no loss rule applies only where the transferred asset remains within the charge to UK corporation tax. It requires that the transferor and transferee companies are:

  • resident in the UK and therefore within the charge to UK corporation tax generally,


  • not resident, but within the charge to corporation tax on chargeable gains in respect of the asset.
  • The second requirement is expressed in terms of requiring that the asset is a “chargeable asset”. That is, any gain on the disposal of the asset would be chargeable to corporation tax by virtue of TCGA92/S10B because the asset:

    • is situated in the UK and
    • is held or used for the purposes of a trade carried on in the UK by the non-resident company through a permanent establishment (see CG42100+).