Consultation outcome

Draft regulations: The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2019

• From: HM Revenue & Customs
• Published: 17 September 2019
• Last updated: 20 March 2020 — See all updates

This consultation has concluded

Detail of outcome

You can read The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2020 No. 315, including an explanatory memorandum.

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Original consultation

Summary

We are seeking views on draft amendments to legislation about the taxation of UK property rich collective investment vehicles and their investors.

This consultation ran from
9:30am on 17 September 2019 to 11:45pm on 25 October 2019

Consultation description

Schedule 1 to Finance Act 2019 introduced new provisions extending taxation of gains accruing to non-UK residents to include gains on disposals of interests in non-residential UK property.

It also extended taxation of gains on residential property to include disposals made by widely held companies, by certain investment funds and life assurance companies. The new rules apply to disposals made on or after 6 April 2019.

These regulations amend part of those rules specifically concerning ‘UK property rich’ collective investment vehicles (CIVs) and their investors.

The amendments follow representations made by stakeholders after the rules were introduced. They ensure the legislation will work as had been intended.

In particular, the changes mean that investors who are exempt from tax on capital gains can benefit from that exemption when investing in these vehicles. They also remove unintended technical barriers to eligible CIVs making elections for transparency or exemption.

This consultation will be of interest to managers and advisers of CIVs investing predominantly in UK real estate, to those holding an interest in these, and to representative bodies.

The changes mainly affect non-UK residents, but there are also impacts on CIVs and investors resident in the UK.

Before submitting your response, you can read:

• (draft) The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2019
• a (draft) explanatory memorandum

Documents

(Draft) The UK Property Rich Collective Investment Vehicles (Amendment of the Taxation of Chargeable Gains Act 1992) Regulations 2019

PDF, 269 KB, 7 pages

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(Draft) explanatory memorandum

PDF, 156 KB, 5 pages

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Published 17 September 2019
Last updated 20 March 2020 + show all updates

1. 20 March 2020

   Published outcome summary: link to the final regulations and an explanatory memorandum.

2. 17 September 2019

   First published.