# Taxation of Chargeable Gains Act 1992, Paragraph 6

Extent: E+W+S+N.I.

(1) This paragraph applies if—
(a) a person disposes of an asset that derives at least 75% of its value from UK land (as determined in accordance with Part 2 of Schedule 1A), and
(b) the disposal has an appropriate connection to a collective investment vehicle (see sub-paragraphs (3) to (6) for the cases in which this test is met).
(2) For the purposes of section 1A(3)(c) or 2B(4)(b) (disposals by non-UK residents of assets deriving 75% of value from UK land etc), the person is treated as having a substantial indirect interest in the UK land at the time of the disposal.
(3) A disposal has an appropriate connection to a collective investment vehicle if the asset disposed of consists of a right or interest in—
(a) a collective investment vehicle, or
(b) a company at least half of whose market value derives from its being a direct or indirect participant in one or more collective investment vehicles.
(4) A disposal has an appropriate connection to a collective investment vehicle if—
(a) the vehicle is constituted by two or more persons carrying on a trade or business in partnership, and
(b) the disposal is made by a person as a participant in the vehicle.
(5) A disposal has an appropriate connection to a collective investment vehicle if the vehicle is a company and the disposal is made by it.
(6) A disposal has an appropriate connection to a collective investment vehicle if—
(a) a company (which is not the vehicle) makes the disposal,
(b) the vehicle is UK property rich,
(c) the vehicle together with one or more other collective investment vehicles have a 50% investment in the company, and
(d) each of those other collective investment vehicles is also UK property rich.
(7) Collective investment vehicles have a 50% investment in a company if, applying the rule in paragraph 9 (but without regard to paragraph 10) of Schedule 1A as if references to 25% were references to 50%, the vehicles would be regarded as having a 50% investment in the company at the time of the disposal.
(8) For this purpose the collective investment vehicles are to be regarded as if they were a single person.
(9) This paragraph is subject to paragraph 7 (collective investment vehicles expected to have no more than 40% investments in UK land) , paragraph 7A (overseas life insurance companies) and paragraph 7B (offshore collective investment vehicles (other than UK feeder vehicles) that meet the conditions in paragraph 7(2)(a) and (b)).

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/5AAA/paragraph/6 (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-5AAA/paragraph-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.