Taxation of Chargeable Gains Act 1992

[F1 PART 4 U.K. Direct disposals of assets partly chargeable before 6 April 2019

Textual Amendments

F1 Sch. 4AA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 17

Introduction U.K.

12 (1) This Part of this Schedule applies to any direct disposal of UK land if— U.K.

(a) neither Part 2 nor Part 3 of this Schedule applies to the disposal, and

(b) the interest in UK land being disposed of was not a post-April 2015 asset that was fully residential before 6 April 2019.

(2) For this purpose—

(a) the interest in UK land being disposed of is a “post-April 2015 asset” if it was acquired by the person after 5 April 2015, and

(b) the asset “was fully residential before 6 April 2019” if, in the period beginning with the day on which it was acquired and ending with 5 April 2019, every day on which the land to which the disposal relates consisted of a dwelling.

(3) If the disposal is of an interest in land subsisting under a contract for the acquisition of land that, at any time in that period, did not consist of a building to be constructed or adapted for use as a dwelling, the disposal is taken to be not fully residential before 6 April 2019.

Re-basing to 5 April 2015 and 5 April 2019 U.K.

13 (1) In calculating the gain or loss accruing on the disposal (“the actual disposal”) it is be assumed that— U.K.

(a) the asset was on 5 April 2015 sold by the person, and immediately reacquired by the person, at its market value on that date (but see sub-paragraph (3)), and

(b) in addition, the asset was on 5 April 2019 sold by the person, and immediately reacquired by the person, at its market value on that date.

(2) In the case of the assumed sale on 5 April 2019, the gain or loss accruing on that sale is treated as accruing on the actual disposal (in addition to the gain or loss that actually accrues on the actual disposal).

(3) If the asset was acquired by the person after 5 April 2015, the assumption that it is sold, and immediately reacquired, on 5 April 2015 is not to apply.

(4) This paragraph has effect subject to any election made by the person under paragraph 14 (retrospective basis of calculation).

Election for retrospective basis of calculation U.K.

14 U.K. The person may make an election under this paragraph for the assumptions that the asset is sold and reacquired as mentioned in paragraph 13 not to apply.

Calculation of residential property gain if election made under paragraph 14 U.K.

15 (1) This paragraph applies if— U.K.

(a) a person makes an election under paragraph 14 in respect of a disposal on which a gain accrues, and

(b) it is necessary to determine, in accordance with Schedule 1B, how much of the gain is a residential property gain.

(2) Paragraph 2 of Schedule 1B has effect as if—

(a) sub-paragraphs (5) and (6) of that paragraph were omitted, and

(b) in that paragraph, “the applicable period” had the definition given by the next sub-paragraph.

(3) “The applicable period” means the period—

(a) beginning with the day on which the person acquired the interest in land being disposed of or, if later, 31 March 1982, and

(b) ending with the day before the day on which the disposal is made.]