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Readers’ forum: Disputed interpretation

03 December 2019
Issue: 4723 / Categories: Forum & Feedback
Interaction of non-resident capital gains tax rules with holdover relief.

I am dealing with land which had previously been a business asset that has been gifted by a UK resident donor to a non-resident. This situation is covered in the department’s Capital Gains Manual at CG66886.

TCGA 1992 s 167A(4) refers to s 165(6) to give the interpretation of the held-over gain. Section 165(6) says that this is the gain which would have accrued if s 165 is not claimed. Although it is the case broadly that the non-resident capital gain that accrues is taken from 6 April 2015 (for UK residential land held at that date) or from 6 April 2019 (for non-residential land) to the date of disposal (the amount that HMRC says can be held over under s 167A) the remainder of the gain drops out of charge (because the non-resident disponor was not within the scope of capital gains tax before...

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