Tax
Deemed disposal
A deemed disposal is a rule treating an asset as having been sold at market value when no sale has taken place — most commonly on ceasing tax residence, on death, or on a change in the way an asset is held — so that accrued gains can be brought into charge.
In plain terms: The tax code pretends you sold something so it can tax the gain.
Why it matters
It is the mechanism behind most exit taxes, and it creates a liability with no cash to pay it. That is the practical problem: a founder holding illiquid shares can face a real bill on a paper gain, which is why deferral and instalment provisions matter more than the headline rate.
Read the full guideExit taxes: what it costs to leave