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The basic principles that applied on the introduction of non-resident CG continue to apply with the extension of the scope non-resident CG.

Gifts hold-over relief

TCGA92/S165 is concerned with cases where business assets are disposed of as a gift (see CG66990+). It is extended to cover assets involved in a non-resident CGT disposal from a non-UK resident to a UK resident. Non-resident CGT gains may therefore be included as held-over gains.

TCGA92/S167A modifies the rules in TCGA92/S165 on relief for gifts of business assets. It is concerned with cases where assets are disposed of as a gift from a UK resident to a non-UK resident, and the disposal relates to an asset within S1A(3) (b) or (c). It provides that hold-over relief is not denied where the asset is chargeable to non-resident CGT in the hands of the person to whom the asset is transferred. The full amount of the held-over gain accrues as a chargeable non-resident CGT gain for that person at the point when they subsequently dispose of it.

TCGA92/S260 is concerned with cases where gifts are exempt or potentially exempt from inheritance tax (see CG67040). This is amended, so that where the asset involved in disposal is a direct or indirect disposal of UK land which meets the non-residence condition as a gift from a non-UK resident to a UK resident, non-resident CGT gains may be included as held-over gains under this provision.

TCGA92/S261ZA is concerned with cases where assets are disposed of as a gift from a UK resident to a non-UK resident in the circumstances envisaged by TCGA92/S260, and the disposal is of an asset within S1A(3) (b) or (c). It provides that hold-over relief is not denied where the asset is chargeable to non-resident CGT in the hands of the person to whom the asset is transferred. The full amount of the held-over gain accrues as a chargeable non-resident CGT gain for the transferee when they subsequent dispose of the asset.

Share Reorganisation, Share Exchange and Reconstructions

TCGA92/S127, S135 and S136 are concerned with share reorganisations, share exchanges and reconstructions where there is the issue of new securities. These are commonly known as ‘paper for paper� exchanges. These provisions can apply for indirect disposals subject to their operational conditions being satisfied.

Reconstruction involving transfer of business

TCGA92/S139 is concerned with company reconstructions involving the transfer of a business. It allows companies to dispose of assets for no gain and no loss on a scheme of reconstruction (see CG52800+). This is extended so that assets which would remain chargeable to corporation tax on a subsequent disposal are included among the assets to which this provision applies.

Roll-over relief

TCGA92/S159A modifies the provisions on roll-over relief in TCGA92/S152. It provides that relief does not apply to a person chargeable to non-resident CG on a gain relating to the original assets, unless the replacement assets represent interests in UK land within the scope of the non-resident CG rules at the time they are acquired (see CG60250).