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The NRCGT rules charging gains on disposals by non-UK residents of direct or indirect interests in UK land are modified in the case of collective investment vehicles (CIVs) and their investors so as to limit the potential for multiple layers of UK taxation and any unintended consequences of the rules for exempt investors in offshore pension funds and similar vehicles. For an overview of the NRCGT rules generally see C2.1139 and for an overview of the CIV rules see C2.1160. This article discusses the application of the rules where non-resident investors dispose of an interest in an offshore UK property rich CIV.

Non-UK resident CIVs which are UK property rich are treated as companies, and interests in them as shares, which means that disposals by non-resident investors in such entities are chargeable in the same way as a disposal of an interest in a UK property rich company (see C2.1151).

There is a two-part test to determine if an indirect disposal of an interest in a CIV by a non-resident person is chargeable to tax¹: