In some circumstances a non-resident company cannot benefit from
roll-over or postponement of a charge where, in a similar
situation, a resident company would so benefit. Thus, until 1990, a
non-resident company with a branch (or agency) here could not
postpone a charge on gains accruing when it transferred the branch
to a United Kingdom resident company within the same world group,
in other words when the business was domesticated. TCGA92/S172,
which was introduced in 1990, allows a claim by the two companies
to transfer the assets at no gain/no loss to the transferor in the
same way that assets are transferred at no gain/no loss between two
resident companies in the same United Kingdom group (and with
exceptions similar to those for United Kingdom group transfers).
From 1989 TCGA92/S25 (3), which taxes accumulated gains on
the cessation of a branch or agency, could also apply to this
situation so if a claim is made under Section 172, Section 25(3) is
disapplied.
