CG60289 - Reliefs: Replacement of Business Assets (Roll-over Relief): Non-residents
Basic conditions for non-residents
Section 159 of the Taxation of Chargeable Gains Act (TCGA) 1992 explains the roll-over relief rules for non-residents.
For roll-over relief to be available to non-residents, both of the following must apply:
the old assets must be within the scope of UK Capital Gains Tax or Corporation Tax
the new assets must also be within the scope of UK tax
Subject to certain exceptions, relief is available where:
the claimant is not resident in the UK when the disposal of old assets occurs, but
the claimant has become resident in the UK when the new assets are acquired
Restrictions for non-residents
Roll-over relief is restricted where both:
the claimant is dual resident- resident in the UK but treated as non-resident under a double taxation relief arrangement)
the new assets are prescribed assets, meaning the individual would not be liable to UK tax on their disposal because of a double taxation relief arrangement
In these circumstances, relief is not available. The effect of a double taxation relief arrangement is to prevent any UK tax liability arising on gains on disposal of the new assets, even where they are situated in the UK and the claimant is UK-resident.
Interaction with the non-resident capital gains rules
Section 159A TCGA 1992 provides that roll-over relief does not apply to a person chargeable to non-resident capital gains, unless the new assets are interests in UK land that fall within the scope of the non-resident capital gains rules at the time they are acquired.