Venezuela: Capital gains
Article 13 of the agreement provides source state taxing rights over gains arising to a resident of either the United Kingdom or Venezuela from the disposal of immovable property, as defined in Article 6, situated in the other country (Article 13(1)). This does not affect the rights of the residence state to tax the gains as well. In relation to the United Kingdom, this provision is ineffective as there is currently no United Kingdom domestic law that taxes non-residents in these circumstances.
Where a resident of one of the countries disposes of shares in a company (other than one whose shares are quoted on an approved Stock Exchange) whose assets consist mainly of immovable property situated in the other country, any gain arising may similarly be taxed in both states if their respective domestic laws permit (Article 13(2)). For the meaning of `quoted’ on a Stock Exchange see DT9886.