SCHEDULES

SCHEDULE 1Chargeable gains accruing to non-residents etc

PART 2Consequential amendments

56TCGA 1992

1

Section 167A (gifts of UK residential property interests to non-residents) is amended as follows.

2

In subsection (1)—

a

in the opening words, for “of a UK residential property interest” substitute “of an asset within section 1A(3)(b) or (c)”, and

b

for paragraph (b) substitute—

b

on the assumption that the disposal is a direct or indirect disposal of UK land which meets the non-residence condition (whether or not that is the case), that gain would be a relevant gain (see subsections (6) and (7)).

3

In subsection (3)—

a

in the opening words, for “non-resident CGT disposal” substitute “direct or indirect disposal of UK land which meets the non-residence condition”,

b

in paragraph (a), for ““chargeable NRCGT gain”” substitute ““relevant gain””,

c

in paragraph (b), for ““chargeable NRCGT gain”” substitute ““relevant gain””, and

d

in paragraph (c), for ““the chargeable NRCGT gain” substitute ““the relevant gain”.

4

In subsection (4)—

a

in the opening words, for “the interest in UK land” substitute “the asset within section 1A(3)(b) or (c)”, and

b

for paragraph (b) substitute—

b

(if that would not otherwise be the case) is to be treated as a relevant gain.

5

For subsection (6) substitute—

6

For the purposes of this section, a disposal is a “direct or indirect disposal of UK land which meets the non-residence condition” if it is—

a

a disposal on which a gain accrues that falls to be dealt with by section 1A(3) because the asset disposed of is within paragraph (b) or (c) of that subsection, or

b

a disposal on which a gain accrues that falls to be dealt with by section 1A(1) in accordance with section 1G(2) because the asset disposed of is within section 1A(3)(b) or (c).

7

For the purposes of this section, a “relevant gain” means so much of any chargeable gain accruing on a disposal as falls to be dealt with as mentioned in subsection (6)(a) or (b).

6

In the title, for “UK residential property interests” substitute “direct or indirect interests in UK land”.