CG12410 - Location of assets: importance for charge to tax

Circumstances in which the existence of tax charge on any gains depends on the location of assets include

• disposals of assets by an individual who is resident and/or ordinarily resident* in the UK but who is not domiciled, and not deemed domiciled** , in the UK: gains on disposals of assets situated outside the UK may be chargeable only to the extent that they are remitted to the UK, TCGA92/S12***. This is known as the remittance basis of taxation. See CG25300+ for further guidance.
• a transfer abroad of an asset situated in the UK by a person, other than a company, who is neither resident nor ordinarily resident* in the UK but who is carrying on a trade, profession or vocation in the UK through a branch or agency is chargeable provided such persons have either
  • used the assets in or for the purposes of the trade, profession or vocation, or
  • used or held assets for the purposes of the branch or agency, TCGA92/S25.See CG25530 for further details.

See also CG10700 for general guidance on occassions when a charge may arise on disposals by a non-resident.

*For 2013/14 and subsequent years ordinary residence does not need to be considered.

**For 2017/18 and subsequent years an individual may be deemed domiciled in the UK. Guidance on deemed domicile is within the Residence, Domicile and Remittance Basis Manual.

***These provisions were re-written for disposals from 6 April 2019 see CG10150.