Investors in non-reporting funds: charge to tax on disposal of an interest: application of other TCGA provisions
Certain provisions relating to capital gains tax (or to corporation tax on chargeable gains) also have effect in relation to income tax or corporation tax on offshore income gains (OIGs).
- A person is chargeable to tax on OIGs arising during a year of assessment for any part of which they are resident in the UK (or if they are ordinarily resident in that year) (regulation 22(1)(a) and section 2(1) TCGA).
- A person carrying on a business in the UK through a branch or agency or a company with a UK permanent establishment is chargeable to tax on OIGs arising on the disposal of a holding in an offshore fund if the holding was held for the purposes of the UK branch, agency or permanent establishment (regulation 22(1)(b) and (c) and sections 10 and 10B TCGA).
- An individual who is temporarily non-resident (within the meaning of section 10A TCGA) is chargeable to income tax on offshore gains arising during the period of temporary non-residence in the year of return to the UK (Section 10A TCGA as modified by regulation 23).
Detailed guidance on the application of TCGA in each of these cases can be found in the Capital Gains Manual. In each case the regulations apply the provisions of TCGA to tax on offshore income gains in the same way as those provisions ordinarily apply to tax on chargeable gains.