CG73736 - Non-Resident Capital Gains Tax (NRCGT) - Disposals on or after 6 April 2015 to 5 April 2019: The Charge to Non-Resident CGT, and the exemptions: Qualified institutional investor

There are provisions concerning “qualified institutional investors” in Sch C1 paras 5 and 6.

Besides the cases already considered of widely-marketed schemes, the legislation specifically refers to the following -

• the trustee or manager of a qualifying pension scheme;
• a person who cannot be liable to corporation tax or income tax (as relevant) on the grounds of sovereign immunity.

The legislation effectively excludes from a charge to non-resident CGT foreign pension schemes that are established for the benefit of diverse beneficiaries, so as to ensure parity of treatment with UK pension schemes. The entities that benefit from a general exemption from tax on income and gains in the UK by reason of sovereign immunity are sovereign wealth funds.