Section 12 Non-resident with United Kingdom branch or agency.

United Kingdom

C1(1)

Subject to any exceptions provided by this Act, a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to him in a year of assessment in which he is not resident and not ordinarily resident in the United Kingdom but is carrying on a trade in the United Kingdom through a branch or agency, and shall be so chargeable on chargeable gains accruing on the disposal—

(a)

of assets situated in the United Kingdom and used in or for the purposes of the trade at or before the time when the capital gain accrued, or

(b)

of assets situated in the United Kingdom and used or held for the purposes of the branch or agency at or before that time, or assets acquired for use by or for the purposes of the branch or agency.

F1 C2(1A)

Subsection (1) above does not apply unless the disposal is made at a time when the person is carrying on the trade in the United Kingdom through a branch or agency.

(2)

This section shall not apply to a person who, by virtue of Part XVIII of F2the Taxes Act 1988(double taxation agreements), is exempt from income tax chargeable for the year of assessment in respect of the profits or gains of the branch or agency.

F3(2A)

This section shall apply as if references to a trade included references to a profession or vocation.

C3(3)

In this Act, unless the context otherwise requires, “branch or agency” means any factorship, agency, receivership, branch or management, but does not include any person within the exemptions in section 82 of the M1Taxes Management Act 1970 (general agents and brokers).

Annotations

Textual amendments

F1: By Finance Act 1989 (c. 26, SIF 63:2), s. 128(2) it is provided that s. 12(1A) is inserted for 1989–90 and subsequent years
F2: Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32
F3: By Finance Act 1989 (c. 26, SIF 63:2), s. 126(2) it is provided that s. 12(2A) is inserted for 1989–90 and subsequent years

Marginal citations

M1: 1970 c. 9.

Modifications

C1: See—Finance Act 1973 (c. 51, SIF 63:1), s. 38; Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 761(2)(3)(4); Finance Act 1989 (c. 26, SIF 63:2), s. 131
C2: See Finance Act 1989 (c. 26, SIF 63:2), s. 127 et seq.
C3: See— Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 715(8); Finance Act 1988 (c. 39, SIF 63:1, 2), s. 105(5)

Notes on the whole Act

Textual amendments

F1: Act repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s. 201(3), Sch. 11 paras. 20, 22, 26(2), 27 and with saving in Sch. 11 para. 24(2)) and subject to an amendment (prosp.) by Museum and Galleries Act 1992 (c. 44), s. 11(2), Sch. 8 Pt. I para. 1(1)(2)(7), and amendments by: Disability Living Allowance and Disability Working Allowance Act 1991 (c. 21), s. 4(2), Sch. 2 para. 9(1)(2) (in force 6.4.1992 by S.I. 1991/2617, art. 2(f)); S.I. 1991/2874, art. 2 (in force 6.4.1992 by S.R. 1992/94, art. 2); Social Security (Consequential Provisions) Act 1992 (c. 6), s. 4, Sch. 2 para. 52(a)(b) (in force 1.7.1992 by s. 7(2) of the amending Act); Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), s. 4, Sch. 2 para. 20(a)(b) (in force 1.7.1992 by s. 7(2) of the amending Act); Finance (No. 2) Act 1992 (c. 48), ss. 35(2), 47, 48, 56, 77, Sch. 9 para. 20(1)(inserting ss. 143A and 143B), Sch. 17 paras. 3, 6(2)(5), 7, (the amendments coming into force 16.7.1992 except for the amendment by s. 56, Sch. 9 para. 20(1) which comes into force on 19.2.1993 by S.I. 1993/236, art. 2); and amendments (retrospective to 1.1.1992) by ss. 35(2), 47, 48 of the same 1992 Act, and amendments (27.7.1993 with effect as mentioned in ss. 84(3), 86(4), 88(4), 105(4) of the amending Act) by 1993 c. 34, ss. 84(3), 86(4), 88(4)(a)(b), 105(3)(4)