SCHEDULES

[F1 SCHEDULE 4ZZC U.K.Disposals of residential property interests: gains and losses

Textual Amendments

F1 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

PART 3 U.K. RPI 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) U.K.

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— U.K.

(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).]