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Where Taxpayers and Advisers Meet

Capital gains on an overseas company

Posts: 85
Joined: Wed Aug 06, 2008 3:43 pm

Capital gains on an overseas company

Postby Yiannis17 » Fri Nov 20, 2020 9:57 am


If an overseas company, US registered, sells shares it holds in a UK registered company, listed or unlisted in the UK, would there be capital gains on any potential sale, assuming there is a gain?

Thank you

Posts: 1100
Joined: Fri May 16, 2014 3:47 pm

Re: Capital gains on an overseas company

Postby AGoodman » Fri Nov 20, 2020 2:28 pm

I don't know about wider anti-avoidance provisions (there could be all sorts) but there are charges where:

The US company is UK tax resident (due to management and control here); or
The UK company shares derive 75% of their value from UK land; or
If the US company has UK resident participators, they could have s.3 TCGA liability (the old s.13)

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Joined: Wed Aug 06, 2008 3:25 pm

Re: Capital gains on an overseas company

Postby maths » Sun Nov 22, 2020 5:20 pm

Assuming US company is not UK resident (and assuming no UK anti-avoidance provisions as AG refers to are not in point) no UK tax charge arises on any gain unless basically 75% of the UK's gross asset value is attributable to UK land, in which case any gain will be subject to UK corporation tax, not CGT.

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