»Ê¹ÚÌåÓýapp

B is a UK resident but non-UK domiciled beneficiary of a non-UK resident settlement. B claims the remittance basis. »Ê¹ÚÌåÓýapp settlement owns 100% of the issued share capital of a Gibraltarian holding company which in turn owns 100% of the issued share capital of a Gibraltarian company. That company owns a property in Spain. Both companies are non-UK resident.

»Ê¹ÚÌåÓýapp company sells the property in Spain creating a section 2(2)* amount of £120,000 through TCGA92/S13*. »Ê¹ÚÌåÓýapp company invests some of the proceeds in the purchase of a smaller property in Spain. B is allowed to use the property rent-free. B is also allowed rent-free use of a cottage in Devon owned by the settlement.

»Ê¹ÚÌåÓýapp use of both properties by B gives rise to a capital payment equal to the value of the benefit. »Ê¹ÚÌåÓýappse capital payments are matched against the section 2(2)* amount and a section 87 chargeable gain accrues to B. Section 87B(2) TCGA provides this is a foreign chargeable gain. »Ê¹ÚÌåÓýapp use of the property in Devon meets condition A in section 809L. Because section 87B(3) TCGA provides the benefits derive from the chargeable gains the use of that property also meets condition B in section 809L(3)(b) ITA 2007. B is treated as remitting the capital payment created by the use of the Devon property to the UK and is liable to Capital Gains Tax on that payment. »Ê¹ÚÌåÓýapp use of the property in Spain is not treated as a remittance to the UK and B is not liable to Capital Gains Tax on that payment.

*»Ê¹ÚÌåÓýappse sections were re-written for disposals from 6 April 2019 see CG10150.