Part I Capital gains tax and corporation tax on chargeable gains

Capital gains tax

F12C“Relevant high value disposal”

(1)

A disposal on which a gain or loss accrues to P is a “relevant high value disposal” if conditions A to D are met.

(2)

Condition A is that the disposal is of the whole or part of a chargeable interest (“the disposed of interest”).

(3)

Condition B is that the disposed of interest has, at any time during the relevant ownership period, been or formed part of a single-dwelling interest.

(4)

Condition C is that—

(a)

P, or

(b)

if the disposed of interest is a partnership asset, the responsible partners, or

(c)

if the disposed of interest is held for the purposes of a relevant collective investment scheme, the person who has day-to-day control over the management of the property subject to the scheme,

has or have been within the charge to annual tax on enveloped dwellings with respect to that single-dwelling interest on one or more days in the relevant ownership period which are not relievable days in relation to the interest.

(5)

Condition D is that the amount or value of the consideration for the disposal exceeds the threshold amount (see section 2D).

(6)

In this section and section 2D—

“chargeable interest” has the same meaning as in Part 3 of the Finance Act 2013 (annual tax on enveloped dwellings) (see section 107 of that Act (chargeable interest));

“dwelling” has the same meaning as in that Part (see section 112 of that Act);

“relevant collective investment scheme” has the same meaning as in section 2B;

“the relevant ownership period” means the period which begins—

(a)

if an election has been made under paragraph 5 of Schedule 4ZZA, with the day on which P acquired the chargeable interest or, if later, 31 March 1982, and

(b)

in any other case, with the day on which P acquired the chargeable interest or, if later, F26 April in the relevant year,

and ends with the day before the day on which the disposal occurs;

F3“the relevant year” means—

(a)

in Case 1 in paragraph 2 of Schedule 4ZZA, 2013;

(b)

in Case 2 in that paragraph, 2015;

(c)

in Case 3 in that paragraph, 2016;

“relievable day” means a day which is “relievable” by virtue of any of the provisions mentioned in section 132 of the Finance Act 2013 (ATED: effect of reliefs) and in respect of which a claim has been made under section 106(3) of that Act;

“the responsible partners” has the same meaning as in section 96 of that Act;

“single-dwelling interest” has the same meaning as in Part 3 of that Act;

and a reference to being “within the charge” to annual tax on enveloped dwellings with respect to a single-dwelling interest is to be read in accordance with section 170(2) of that Act.

(7)

For the purposes of Condition C—

(a)

Part 3 of the Finance Act 2013 applies, in relation to any part of the relevant ownership period falling before 1 April 2013, as if section 94(8)(a) of that Act (first chargeable period for ATED) read “the period beginning with 31 March 1982 and ending with 31 March 1983”, and

(b)

when determining whether any day falling before F41 April in the relevant year is a relievable day, the definition of “relievable day” in subsection (6) above is to read as if the words “and in respect of which a claim has been made under section 106(3) of that Act” were omitted.