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Taxation of Chargeable Gains Act 1992

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Changes over time for: Paragraph 17

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Version Superseded: 15/09/2016

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Point in time view as at 26/05/2015.

Changes to legislation:

Taxation of Chargeable Gains Act 1992, Paragraph 17 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

[F117(1)This paragraph applies in relation to a relevant high value disposal to which paragraph 13 applies.U.K.

(2)If paragraph 6A of Schedule 4ZZA does not apply, the amount of the balancing gain or loss on the relevant high value disposal is found by adding—

(a)the amount of the balancing gain or loss belonging to the notional post-April 2015 gain or loss, and

(b)the amount of the balancing gain or loss belonging to the notional pre-April 2015 gain or loss,

(treating any amount which is a loss as a negative amount).

If the result is a positive amount, that amount is the balancing gain on the relevant high value disposal.

If the result is a negative amount, that amount (expressed as a positive number) is the balancing loss on the relevant high value disposal.

(3)If paragraph 6A of Schedule 4ZZA applies, the amount of the balancing gain or loss on the relevant high value disposal is found by adding—

(a)the amount of the balancing gain or loss belonging to the notional post-April 2015 gain or loss,

(b)the amount of the balancing gain or loss belonging to the notional pre-April 2015 gain or loss, and

(c)if P held the disposed of interest on 5 April 2013, the amount of the notional pre-April 2013 gain or loss,

(treating any amount which is a loss as a negative amount).

If the result is a positive amount, that amount is the balancing gain on the relevant high value disposal.

If the result is a negative amount, that amount (expressed as a positive number) is the balancing loss on the relevant high value disposal.

(4)The balancing gain or loss belonging to the notional post-April 2015 gain or loss is equal to the balancing fraction of the notional post-April 2015 gain or loss.

(5)The balancing gain or loss belonging to the notional pre-April 2015 gain or loss is equal to the non-ATED related fraction of the notional pre-April 2015 gain or loss.

(6)“The balancing fraction” is—

where—

“BD” is the number of balancing days (see paragraph 16(2)) in the appropriate ownership period;

TD” is the total number of days in the appropriate ownership period.

(7)“The non-ATED related fraction” is—

where—

“NAD” is the number of non-ATED chargeable days (see paragraph 16(3)) in the appropriate ownership period;

TD” is the total number of days in the appropriate ownership period.

(8)Appropriate ownership period” means—

(a)for the purpose of computing the balancing gain or loss belonging to the notional post-April 2015 gain or loss, the post-commencement ownership period defined in paragraph 13(5);

(b)for the purpose of computing the balancing gain or loss belonging to the notional pre-April 2015 gain or loss, the relevant ownership period defined in paragraph 6A(11) of Schedule 4ZZA.

(9)In this paragraph—

(a)notional post-April 2015 gain or loss” has the same meaning as in paragraph 13;

(b)notional pre-April 2015 gain or loss” has the same meaning as in paragraph 6A of Schedule 4ZZA;

(c)notional pre-April 2013 gain or loss” means the gain or loss which would have accrued on 5 April 2013 had the disposed of interest been disposed of for a consideration equal to the market value of that interest at that date.]

Textual Amendments

F1Sch. 4ZZB inserted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 39

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