CG10702 - Chargeable persons

A person is generally chargeable to Capital Gains Tax (“CGT”) on chargeable gains accruing in a tax year if they are resident in the UK, see CG10900P. There are certain exceptions to this rule provided by TCGA92, see CG10760.

 

Sch. 1 of The Interpretations Act 1978 defines a person as including a body of persons corporate or unincorporate. Where it is appropriate the TCGA should be read as applying to companies as well as individuals.

 

S6 of The Interpretations Act 1978 says that in any Act, unless the contrary intention appears,

a.    words importing the masculine gender include the feminine;

b.    words importing the feminine gender include the masculine;

c.     words in the singular include the plural and words in the plural include the singular.

 

Chargeable persons include:

·         individuals, see CG20220C

·         partners in a business partnership, see CG27000C

·         trustees of settlement trusts, see CG33000C

·         personal representatives of deceased persons, see CG30500P

·         companies, see CG40200C.

 

There are special provisions for attributing:

·         The gains accruing to a closely controlled non-resident company to UK resident members of that company, see s3 or s13 (for disposals before 6 April 2019) and CG13500+.

·         The gains accruing to the trustees of non-resident settlements to a UK domiciled and resident settlor, see s86 and CG38430, or UK resident beneficiaries who receive capital payments from the trustees, see s87 and CG38570C.

 

Beneficial owner

 

For capital gains purposes, the person chargeable is normally the ‘beneficial’ owner of the asset which has been disposed of. Often, the beneficial owner of the asset is also the legal owner of the asset but this is not always the case.

 

Any actions by

·         nominees, see s60 and CG34320+,

·         bare trustees (that is, where the person is absolutely entitled to property held by trustees), see s60 and CG34300+,

·         receivers, liquidators or trustees in bankruptcy, see s2G (s8(6) for disposals before 6 April 2019), s66, CG20500 and CG40400+ 

·         mortgages or charge holders or any other persons entitled to the asset by way of security, see s26 and CG12706,

 

are attributed to the beneficial owner so that any gain or loss accruing on an actual disposal of the asset by the nominee etc. accrues to the beneficial owner (and not the nominee). The transfer of legal ownership between a nominee and the beneficial owner does not constitute a disposal for the purposes of TCGA92.