CG78705 - Compensation: confiscated property: introduction: ESC D50
ESC/D50
On 19 December 1994, we introduced ESC/D50 which exempts certain
foreign compensation receipts from Capital Gains Tax. The
Concession applies to cases which were open on that date and you
will find the text of the Concession attached to the press release.
On 20th December 2000 ESC/D50 was revised to extend the
exemption for other payments made by or on behalf of a foreign
government to cover the return of any asset now located in the UK
or a payment in lieu of the return of such asset.
The revised concession applies to cases which were open on
that date and you will find the text of the Concession attached to
the Press Release dated 18 January 2001.
These instructions tell you about the terms of the
Concession. You should refer to the instructions at CG78709+ which
deal with individual countries for details of how it applies to
them.
The Concession ESC/D50 currently covers compensation paid
for property in
- the Baltic States under the UK-USSR 1969 agreement, see CG78710
- the former Soviet Union under the UK-USSR 1986 agreement, see CG78710
- Czechoslovakia under the UK-Czech 1982 agreement, see CG78710
- The Czech Republic & Slovakia under their domestic legislation, see CG78762+
- China under the UK-China 1987 agreement, see CG78710
- the former East Germany under the domestic legislation of Germany, see CG78750+
- Uganda under that country's domestic legislation, see CG78770+
- Iraq and the Persian Gulf under United Nations resolutions, see CG78780+
- Grenada under that country's domestic legislation, see CG78830+.
- Portugal under that country's domestic legislation, see CG78860+.
Further countries may be covered by the Concession in due
course. You will be told if this happens.
If you are asked about a country which is not included in
this list, then you should refer such enquiries to Capital Gains
Policy Group, 100 Parliament Street, London.
The Concession ESC/D50 applies to a person who is entitled
to compensation for property
- in the countries listed above,
or
- in the UK and in respect of which the Spoliation Advisory Panel, see CG78710, or any equivalent body set up outside the UK, has made a recommendation.
or
- following the settlement of a legal claim to the effect that the original seizure or enforced transfer of the property was wrongful and should be declared illegal, see CG78710,
and that person
- was the owner of the property at the time it was confiscated, expropriated or destroyed
or
- has acquired their title, directly or indirectly, from the person who was the owner of the property at that time.
The Concession ESC/D50 does not apply to a person
- who was not the owner of the property at that time and who has acquired their title by giving consideration in the form of money or money's worth
or
- who was either the original owner of the property or had acquired their title from the original owner, and has already claimed an allowable capital loss.
If you have a case which is not covered by the Concession, then you should refer to CG78733 for guidance on dealing with it.
