SCHEDULES
F1SCHEDULE 4ZZCDisposals of residential property interests: gains and losses
PART 3RPI disposals involving relevant high value disposals
Computation of balancing gains or losses on relevant high value disposal within Case 1, 2 or 3 (and no election made)
18
1
The amount of the balancing gain or loss on a relevant high value disposal to which paragraph 11 applies is found by adding—
a
the amount of the balancing gain or loss belonging to the notional pre-ATED gain or loss, and
b
the amount of the balancing gain or loss belonging to the notional post-ATED gain or loss,
(treating any amount which is a loss as a negative amount).
2
If the result is a positive amount, that amount is the balancing gain on the relevant high value disposal.
3
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 pre-ATED gain or loss is equal to the balancing fraction of the notional pre-ATED gain or loss.
5
The balancing gain or loss belonging to the notional post-ATED gain or loss is equal to the balancing fraction of the notional post-ATED gain or loss.
6
The balancing fraction is—
where—
“BD” is the number of balancing days in the appropriate ownership period;
“TD” is the total number of days in the appropriate ownership period.
7
“Balancing day” means a day which is neither—
a
a residential property chargeable day, nor
b
an ATED chargeable day (as defined in paragraph 3 of Schedule 4ZZA).
8
The appropriate ownership period is—
a
for the purpose of computing the balancing gain or loss belonging to the notional pre-ATED gain or loss, the relevant ownership period mentioned in paragraph 13(4);
b
for the purpose of computing the balancing gain or loss belonging to the notional post-ATED gain or loss, the relevant ownership period mentioned in paragraph 14(4).
9
In this paragraph—
“notional pre-ATED gain or loss” means the same as in paragraph 13(2);
“notional post-ATED gain or loss” means the same as in paragraph 14(2).
Sch. 4ZZC inserted (with effect in accordance with s. 83(17) of the amending Act) by Finance Act 2016 (c. 24), Sch. 12 para. 5