Taxation of Chargeable Gains Act 1992

[F1 Cases where asset acquired after 5 April 2015 or election made under paragraph 2(1)(b) U.K.

Textual Amendments

F1 Sch. 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

9 (1) This paragraph applies if— U.K.

(a) the disposed of interest was not held by P throughout the period beginning with 5 April 2015 and ending with the disposal, or

(b) the non-resident CGT disposal is of (or of part of) an interest in UK land in respect of which P makes, or has made, an election under paragraph 2(1)(b).

(2) The NRCGT gain or loss accruing on the disposal is computed as follows.

• Step 1 Determine the amount of the gain or loss which accrues to P. For the purpose of determining the amount of that gain or loss, no account is taken of section 57B or this Schedule (apart from paragraph 23).

• Step 2 The NRCGT gain or (as the case may be) loss accruing on the disposal is an amount equal to the relevant fraction of that gain or loss (but see Step 3).

• Step 3 If there has been mixed use of the subject matter of the disposed of interest on one or more days in the relevant ownership period, the NRCGT gain or loss accruing on the disposal is equal to the appropriate fraction of the amount given by Step 2.

(3) For the purposes of this paragraph there is “mixed use” of land on any day on which the land consists partly, but not exclusively, of one or more dwellings.

(4) In Step 3 “the appropriate fraction” means the fraction that is, on a just and reasonable apportionment, attributable to the dwelling or dwellings.

(5) The gain or loss accruing on the disposal which is not an NRCGT gain or (as the case may be) loss is to be computed as follows.

• Step 1 In a case where there is a gain under Step 1 of sub-paragraph (2), determine the amount of that gain remaining after the deduction of the NRCGT gain determined under that sub-paragraph. That remaining gain is the gain accruing on the disposal which is not an NRCGT gain.

• Step 2 In a case where there is a loss under Step 1 of sub-paragraph (2), determine the amount of that loss remaining after deduction of the NRCGT loss determined under that sub-paragraph. That remaining loss is the loss accruing on the disposal which is not an NRCGT loss.

(6) For the purposes of sub-paragraph (2), “the relevant fraction” is—

where—

“RD” is the number of days in the relevant ownership period on which the subject matter of the disposed of interest consists wholly or partly of a dwelling;

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

(7) “The relevant ownership period” means the period—

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

(b) ending with the day before the day on which the disposal mentioned in paragraph 4(1) occurs.]