Taxation of Chargeable Gains Act 1992

[F1 Cases where an asset is used at the same time for different purposes U.K.

Textual Amendments

F1 Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20

9 (1) This paragraph applies in the case of a disposal by any person of an asset where the asset’s relevant period of ownership is or includes a period (“a mixed-use period") throughout which the asset— U.K.

(a) was a business asset by reference to its use for purposes mentioned in [F2 any provision of paragraph 5] above; but

(b) was, at the same time, being put to a non-qualifying use.

(2) The period throughout which the asset disposed of is to be taken to have been a business asset shall be determined as if the relevant fraction of every mixed-use period were a period throughout which the asset was not a business asset.

(3) In sub-paragraph (2) above “the relevant fraction”, in relation to any mixed-use period, means the fraction which represents the proportion of the use of the asset during that period that was a non-qualifying use.

(4) Where both this paragraph and paragraph 8 above apply in relation to the whole or any part of a period—

(a) effect shall be given to that paragraph first; and

(b) further reductions by virtue of this paragraph in the period for which the asset disposed of is taken to have been a business asset shall be made in respect of only the relevant part of any non-qualifying use.

(5) In sub-paragraph (4) above the reference to the relevant part of any non-qualifying use is a reference to the proportion of that use which is not a use to which a non-qualifying part of any relevant income is attributable.

(6) Where a mixed-use period is a period in which—

(a) the proportion mentioned in sub-paragraph (3) above has been different at different times, or

(b) different attributions have to be made for the purposes of sub-paragraphs (4) and (5) above for different parts of the period,

this paragraph shall require a separate relevant fraction to be determined for, and applied to, each part of the period for which there is a different proportion or attribution.

(7) In this paragraph—

• “non-qualifying use”, in relation to an asset, means any use of the asset for purposes which are not purposes in respect of which the asset would fall to be treated as a business asset at the time of its use; and

• “non-qualifying part” and “relevant income” have the same meanings as in paragraph 8 above.]

Textual Amendments

F2 Words in Sch. A1 para. 9(1)(a) substituted (10.7.2003) by Finance Act 2003 (c. 14), s. 160(4)(a) (with s. 160(5))