Offshore gains: s 13 and general CGT issues

 

My client has a traditional enveloped structure with an offshore (to the UK) company directly holding UK situs high value residential property. A combination of the annual tax on enveloped dwellings (ATED) regime (2013) ATED related capital gains tax (CGT) (2013 staggered) non-resident capital gains tax (NRCGT) (2015) and the changes to the taxation of a non-UK domiciled individual post April 2017 has caused the company shareholders and directors to seek to de-envelope the structure in favour of personal ownership between the shareholders. The company has five equal shareholders who are all siblings in the same family. All shareholders were non-UK domiciled (for all purposes) and non-tax resident when the structure was established in the early 2000s. However one of the five shareholders is now UK tax resident (but remains non-domiciled). What immediate tax issues arise in the UK...