Tax Relocation
Deemed Disposition
A deemed disposition treats an asset as sold at market value on a specified date even though no sale occurred, crystallising any gain for tax purposes. It is the mechanism most emigration charges use: residence ceases, assets are deemed sold that day, and the resulting gain becomes taxable.
Why it matters
Because the gain is notional, the tax is real but the cash is not. That mismatch is the planning problem: a liability falls due on assets the individual still holds and may not wish to sell. Illiquid holdings — private company shares, property, carried interest — are where it bites hardest.
— Growth Capital Advisory Team
Also known as
deemed disposal · deemed sale
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Related terms
Reference
Where this fits
Growth Capital publishes jurisdiction-by-jurisdiction analysis of what applies when residence changes — covering the UK, United States, Canada, Australia and the UAE.
Read the analysisDisclaimer. This definition is provided for general reference and does not constitute tax, legal, or financial advice. Rules and thresholds change, and individual circumstances vary significantly. Consult a qualified adviser before acting on it.