A gain arising on an indirect disposal of an interest in UK land is chargeable to tax under the non-resident capital gains tax (NRCGT) rules where the person disposing of the property is not resident in the UK. For an overview of the NRCGT rules for indirect disposals see C2.1150. An indirect disposal consists of the disposal of a right or interest in a company that is 'property rich' and this article discusses when a company is regarded as property rich.
A company is 'property rich' if at least 75% of the total gross market value of the company's 'qualifying assets' derives directly or indirectly from interests in UK land1.
The market value of a company will include its own market value, and that of other assets it has a right or interest in. Market value may be traced through any number of companies, partnerships, trusts and other entities or arrangements (whether established in the UK or not). However, tracing cannot be made through normal commercial loans. A normal commercial
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