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HMRC internal manual

Capital Gains Manual

Non-resident companies: exemptions

There are a number of exemptions from TCGA92/S13. Some of these apply automatically. Section 13 does not apply to

  • apportionments of a company’s gain (see CG57305) where the amount apportioned would be:

    • for years up to and including 2011-12 ten per cent or less
    • for years 2012-13 and subsequent years twenty five per cent or less
  • disposals of assets used for a foreign trade, see CG57310
  • disposal of currency used for a foreign trade, see CG57311
  • disposal of assets used for the trade of a UK permanent establishment, see CG57312
  • disposal of assets used for the purposes of economically significant activities - for 2012-13 and later years, see CG57314 (where the arrangements reflect genuine economic reality)
  • disposal of assets where the arrangements did not involve a tax avoidance motive - for 2012-13 and later years, see CG57317
  • ATED related gains see CG57204.

And if the participator is not domiciled in the UK and the asset the company disposed of was not situated in the UK then the gain deemed to accrue to the participator is a foreign chargeable gain and the remittance basis may therefore apply, with the result that a tax charge only arises when the gain is remitted to the UK (TCGA92/S14A). For guidance on the remittance basis and the meaning of remitted to the United Kingdom, see CG25000+ and the Residence, Domicile & Remittances Manual.

Certain changes introduced by the Finance Act 2013 apply to gains accruing to the company on or after 6 April 2012. However see CG57302.