When a company disposes of relevant property post 5 April 2013 and the value exceeds the ATED threshold, a ATED related capital gain can occur. During a recent discussion with fellow professionals, a debate was raised as to whether the Requirement To Correct penalties could be applied to ATED related gains for offshore companies.
As we know, under para 12(2) of the RTC schedule, companies are not caught by RTC penalties for non-resident capital gains. However, as ATED related gains are not covered in this schedule and are not specifically excluded, the harsher RTC penalties will be applied.
With the extension of NRCGT to all properties from 6 April 2019, ATED related capital gains will no longer apply for 2019/2020 onwards. Therefore, the potential period at risk will be between 5 April 2013 through to 6 April 2019.
This is a potential detail that people may have overlooked and, when making a disclosure, one that will need to be looked at closely.