Practice guide: Attribution of gains of overseas companies

Outline of rules

Gains made by overseas companies can be subject to tax in the UK if they are attributed to shareholders or other participators under TCGA 1992 s 13. In most cases the participators will be the shareholders of the company but participators can also include loan creditors option holders and other persons who hold rights over the company.

The provisions of s 13 apply where:

• a company resident outside the UK
• hich would be a close company if it were resident in the UK