Taxation of Chargeable Gains Act 1992

[F1 PART 5 U.K. Miscellaneous

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

Companies with UK land becoming UK resident after 5 April 2019 U.K.

16 (1) This paragraph applies in any case where— U.K.

(a) a company becomes resident in the United Kingdom after 5 April 2019,

(b) the company makes a direct or indirect disposal of UK land after that date, and

(c) (ignoring this paragraph) Part 2, 3 or 4 of this Schedule would have applied to the disposal but for the fact that it is made at a time when the company is resident in the United Kingdom.

(2) In that case, Part 2, 3 or 4 of this Schedule applies in relation to the disposal (regardless of paragraph 1(1)(b)).

Persons with UK land ceasing to be UK resident after 5 April 2019 U.K.

17 (1) This paragraph applies in any case where— U.K.

(a) the trustees of a settlement cease to be resident in the United Kingdom after 5 April 2019,

(b) after that date the trustees dispose of an asset held by them on that date, and

(c) the disposal is a direct or indirect disposal of UK land.

(2) Nothing in Part 2, 3 or 4 of this Schedule applies to the disposal.

(3) The asset that is disposed of is excepted from the application of section 80(2) (deemed disposal of assets on trustees ceasing to be resident in UK).

18 (1) This paragraph applies in any case where— U.K.

(a) a company ceases to be resident in the United Kingdom after 5 April 2019,

(b) after that date the company disposes of an asset held by it on that date, and

(c) the disposal is a direct or indirect disposal of UK land.

(2) Nothing in Part 2, 3 or 4 of this Schedule applies to the disposal.

(3) The asset that is disposed of is excepted from the application of section 185(2) and (3) (deemed disposal of assets on company ceasing to be resident in UK).

Wasting assets U.K.

19 (1) This paragraph applies if, in calculating a gain or loss accruing to a person in a case where paragraph 3, 7 or 13 is applicable, it is necessary to make a wasting asset determination in relation to the asset disposed of. U.K.

(2) The assumption that the asset was acquired on a date mentioned in paragraph 3, 7 or 13 (as the case may be) is to be ignored in making that determination.

(3) In this paragraph “a wasting asset determination” means a determination whether or not an asset is a wasting asset, as defined for the purposes of Chapter 2 of Part 2 of this Act.

Capital allowances U.K.

20 (1) This paragraph applies if, in calculating a gain or loss accruing to a person in a case where paragraph 3, 7 or 13 is applicable, it is to be assumed that the asset disposed of was acquired on a particular date for a consideration equal to its market value on that date. U.K.

(2) For the purposes of that calculation—

(a) section 41 (restriction of losses by reference to capital allowances and renewals allowances), and

(b) section 47 (wasting assets qualifying for capital allowances),

are to apply in relation to any allowance made in respect of the expenditure actually incurred in acquiring or providing the asset as if it were made in respect of the expenditure assumed to have been incurred.

(3) In this paragraph “allowance” means any capital allowance or renewals allowance.

Making of elections U.K.

21 (1) An election under any provision of this Schedule must (regardless of section 42(2) of the Management Act) be made by being included in a relevant return relating to the disposal. U.K.

(2) For the purposes of this paragraph a “relevant return” means—

(a) an ordinary tax return, or

(b) a return under Schedule 2 to the Finance Act 2019.

(3) An election under any provision of this Schedule which is made by being included in a return under Schedule 2 to the Finance Act 2019 may be subsequently revoked by provision included in an ordinary tax return which is delivered on or before the filing date for the ordinary tax return.

(4) Subject to that, an election under any provision of this Schedule is irrevocable.

(5) All such adjustments are to be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under any provision of this Schedule.

(6) For the purposes of this paragraph, in the case of a person other than a company—

• “ordinary tax return” means a return under section 8 or 8A of the Management Act, and

• “the filing date”, in relation to that return, has the meaning given by section 9A(6) of that Act.

(7) For the purposes of this paragraph, in the case of a company—

• “ordinary tax return” means a company tax return under Schedule 18 to the Finance Act 1998, and

• “the filing date”, in relation to that return, has the meaning given by paragraph 14 of that Schedule.

(8) For the purposes of this paragraph—

(a) the reference to an election being included in a relevant return includes its being included as a result of an amendment of the return, and

(b) the reference to the revocation of an election being included in an ordinary tax return includes its being included as a result of an amendment of the return.

Interpretation U.K.

22 (1) In this Schedule— U.K.

(a) any reference to an interest in UK land is to be read in accordance with section 1C (and any reference to land is to be read in accordance with that section), and

(b) any reference to an asset (other than an interest in UK land) deriving at least 75% of its value from UK land where a person has a substantial indirect interest in that land is to be read in accordance with Schedule 1A.

(2) If an interest in UK land disposed of by a person results from interests in UK land acquired by the person at different times, the person is regarded for the purposes of this Schedule as having acquired the interest disposed of at the time of the first acquisition.

(3) For the purposes of this Schedule, whether a building is a dwelling is determined in accordance with Schedule 1B.]