CG10150 - Partial re-write of TCGA 1992
Schedule 1 Finance Act 2019 included a re-write of parts of the TCGA 1992 that applies to disposals on or after 6 April 2019.
This may be referred to as a re-write of Part I TCGA but its actual scope was wider.
The re-write was undertaken alongside the extension to the scope of the rules charging gains on direct or indirect disposals of interests in UK land. See APP14 onwards for the material that will be incorporated into the main part of this manual at CG73920 onwards.
The former Part I TCGA ran from section 1 to section 14H. The re-write extended beyond these sections and in particular resulted in significant changes to the former sections generally dealing with either non-residents or non-domiciled individuals. Certain changes were also required to CTA 2009.
The re-write was to simplify the alignment of the new and existing rules. Apart from the changes to implement the extension the re-write is a re-statement of the pre-existing law and makes no change to the way the pre-existing provision worked.
This manual is being reviewed to include references to both the pre-existing and re-written provisions.
The following general tables cover the main changes.
Derivations
Previous Provision |
New Provision |
|---|---|
1 The Charge to Tax |
1 Capital Gains Tax |
2 Persons and gains chargeable to capital gains tax, and allowable losses |
- |
2(1)-2(1A) |
1A Territorial Scope |
2(1B)-2(1C) |
1G Gains accruing to UK resident individuals in split years |
2(2) |
1 Capital Gains Tax (3) |
2(2A)-(2B) |
1G Gains accruing to UK resident individuals in split years (3) |
2(3) |
1E Losses deductible only when within scope of tax etc. (7); 1F Allowable losses to be used in most beneficial way etc (4), (5) |
2(4)-2(7) |
1E Losses deductible only when within scope of tax etc (4), (5) |
2(7A)-2(7B) |
Repealed |
2A |
Not rewritten as repealed by FA 2008, s8(2), Sch2 para 23, 25 |
2B Persons chargeable to capital gains tax on ATED-related gains |
Repealed |
2C Relevant High Value Disposal |
Repealed |
2D The Threshold Amount |
Repealed |
2E Restriction of Losses |
Repealed |
2F Tapering Relief for Gains |
Repealed |
3 Annual Exempt Amount |
- |
3(1)-3(3) |
1K Annual Exempt Amount |
3(3A)- 3(4) |
1L Increasing Annual exempt amount to reflect increases in CPI |
3(5)-3(8) |
1K Annual Exempt Amount |
3A Reporting Limits |
Moved to s.8C of TMA |
4 Rates of capital gains tax |
- |
4(1)-4(3B) |
1H The main rates of CGT |
4(4)-(6A) |
1I Income taxed at higher rates or gains exceeding unused basic rate band |
4(7)-4(11) |
1J Section 1I: definitions and other supplementary provision |
4(12)-4(13) |
1H The main rates of CGT (9)-(11) |
4A Section 4: special cases |
1J Section 1I: definitions and other supplementary provision |
4B Deduction of losses etc in most beneficial way |
- |
4B(1) |
1F Allowable losses to be used in most beneficial way etc (1) |
4B(2) |
1K Annual Exempt Amount (5) |
4BA Rates, and use of unused basic rate band, in certain cases |
1I Income taxed at higher rates or gains exceeding unused basic rate band |
4BB Residential property gain or loss |
Repealed |
5 |
Not rewritten as repealed by FA 1998, s165, Sch 27, PtIII(29) |
6 |
Not rewritten as repealed by FA 2008, s8(2), Sch 2, paras 1,3 |
7 |
Not rewritten as repealed by FA 1995, ss 103(7), 115(12), 162, Sch 29 Pt VIII(14) |
8 Company’s total profits to include chargeable gains |
- |
8(1) – 8(2) |
2A Company’s total profits to include chargeable gains |
8(3) |
2D Application of CGT principles in calculating gains and losses |
8(4) |
2E References to income tax or Income Tax Acts in case of companies |
8(5) |
2F Interaction of capital gains tax and corporation tax |
8(6) |
2G Assets of a company vested in a liquidator |
9 |
Not rewritten as repealed by FA 2013, s218(1), Sch 45, Pt 5, para 148(1), (2) |
10 Non-resident with United Kingdom branch or agency |
1B Non-Residents: UK branch or agency |
10A Temporary non-residents |
1M Temporary non-residents ; 3E Temporary non-residents |
10AA Section 10A: supplementary |
- |
10AA(1)-10AA(3) |
1N Section 1M(1): assets acquired in temporary period of non-residence |
10AA(4)-10AA(5) |
1M Temporary non-residents (4), (6) |
10B Non-resident company with United Kingdom permanent establishment |
2B Territorial scope of charge to corporation tax on chargeable gains (3) (b) and 2C Non-UK resident company with UK permanent establishment |
11 Visiting forces and official agents |
- |
11(1) |
271ZA Visiting forces and staff of designated allied headquarters |
11(2), (3) |
271ZB Official agents of Commonwealth countries or Republic of Ireland etc |
12 Non-UK domiciled individuals to whom remittance basis applies |
Schedule 1 UK resident individuals not domiciled in UK, para. 1, para 5 |
13 Attribution of gains to members of non-resident companies |
- |
13(1) – 13(4) |
3 Gains attributed to UK resident individuals etc (1)-(6), (11) |
13(5) |
3 Gains attributed to UK resident individuals etc (1); 3A Gains connected to avoidance or foreign activities (1)-(2) |
13(5A)- (7) |
3C Prevention of double UK taxation |
13(8) |
3 Gains attributed to UK resident individuals etc. (9)-(11) |
13(9) -13(10) |
3 Gains attributed to UK resident individuals etc (2), (7)-(8) |
13(10B) |
3B Participators and their interests (5), (6) |
13(11)- (11A) |
3G Supplementary Provisions |
13(12)-(14) |
3B Participators and their interests (1)-(4) |
13A Section 13(5): interpretation |
3A Gains connected to avoidance or foreign activities etc (4)-(7) |
14 Non-resident groups of companies |
3F Non-resident groups of companies |
14A Section 13: non-UK domiciled individuals |
3D Non-UK domiciled individuals |
14B Meaning of “non-resident CGT disposal” |
Repealed |
14C |
Repealed by FA 2016, s83(15), Sch11, paras 1,3 |
14D Persons chargeable to capital gains tax on NRCGT gains |
Repealed |
14E Further provision about use of NRCGT losses |
Repealed |
14F Persons not chargeable under section 14D if a claim is made |
Repealed |
14G Section 14F: divided companies |
Repealed |
Section 14H Section14F: arrangements for avoiding tax |
Repealed |
New Provision |
Previous Provision |
|---|---|
1 Capital Gains Tax |
1 The Charge to Tax, 2(2) |
1A Territorial scope |
2(1)-2(1A) |
1B Non-UK residents:UK branch or agency |
10 Non-resident with United Kingdom branch or agency |
1C Non-UK residents: disposing of 'an interest in UK land' |
- |
1D Non-UK residents: assets deriving 75% of value from UK land etc |
- |
1E Losses deductible only when within the scope of tax etc |
2(3), 2(4)-2(7) |
1F Allowable losses to be used in the most beneficial way etc |
4B(1) |
1G Gains accruing to UK resident individuals with split tax years |
2(1B)-2(1C), 2(2A)-(2B) |
1H The main rates of CGT |
4(1)-4(3B), 4(12)-4(13) |
1I Income taxed at higher rates or gains exceeding unused basic rate band |
4(4)-(6A), 4BA Rates, and use of unused basic rate band, in certain cases |
1J Section 1I: definitions and other supplementary provision |
4A Section 4: special cases, 4(7)-4(11) |
1K Annual exempt amount |
3(1)-3(3), 3(5)-3(8), 4B(2) |
1L Increasing annual exempt amount to reflect increases in CPI |
3(3A)- 3(4) |
1M Temporary non-residents |
10A Temporary non-residents, 10AA(4)-10AA(5) |
1N Section 1M(1): assets acquired in temporary period of non-residence |
10AA(1)-10AA(3) |
1O Definitions in Chapter |
- |
2 Corporation tax on chargeable gains: the general scheme |
- |
2A Company’s total profits to include chargeable gains |
8(1) – 8(2) |
2B Territorial scope of charge to corporation tax on chargeable gains |
10B Non-resident company with United Kingdom permanent establishment |
2C Non-UK resident company with UK permanent establishment |
10B Non-resident company with United Kingdom permanent establishment |
2D Application of CGT principles in calculating gains and losses |
8(3) |
2E References to income tax or Income Tax Acts in case of companies |
8(4) |
2F Interaction of capital gains tax and corporation tax |
8(5) |
2G Assets of a company vested in a liquidator |
8(6) |
3 Gains attributed to UK resident individuals etc. |
13(1) – 13(5), (8)-(10) |
3A Gains connected to avoidance or foreign activities etc |
13A Section 13(5): interpretation |
3B Participators and their interests |
13(12)-(14), 13(10B) |
3C Prevention of double UK taxation |
13(5A)- (7) |
3D Non-UK domiciled individuals |
14A Section 13: non-UK domiciled individuals |
3E Temporary non-residents |
10A Temporary non-residents |
3F Non-resident groups of companies |
14 Non-resident groups of companies |
3G Supplementary Provisions |
13(11)- (11A) |
271ZA Visiting forces and staff of designated allied headquarters |
11(1) |
271ZB Official agents of Commonwealth countries or Republic of Ireland etc |
11(2), (3) |
Schedule 1 UK resident individuals not domiciled in UK, para. 1, para 5 |
12 Non-UK domiciled individuals to whom remittance basis applies |