ITA07/S643 (1) exclude a person from being a transferor or transferee where he is non-UK resident throughout the tax year in which a transfer occurs and not ordinarily resident in that tax year.
ITA07/S643 (2) also excludes a non-resident who carries on a trade in the UK through a branch or agency, but not where
The rules that apply for capital gains tax purpose (TCGA92/S275 and S275C) determine where the securities are situated.
These are securities issued by the British Government on terms that any profits or gains arising from them are exempt from UK tax provided they are beneficially owned by persons not ordinarily resident in the UK (FA96/S154). With effect from 6 April 1998, FA98/S161 changed the status of gilts issued without FOTRA conditions. Subject to transitional provisions for the Accrued Income Scheme in FA98/S161 (2)(a), all gilts are now FOTRA securities whenever they were issued, including those issued before 6 April 1998. Persons not ordinarily resident in the United Kingdom, who dispose of or acquire the securities as beneficial owners, are therefore excluded from the AIS on transfers of such securities. See also SAIM1180.