Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 1

Introduction

Schedule 4AA paragraph 1 introduces the rebasing rules that apply when a non-resident (or a UK resident during the overseas part of a split year) first disposes of UK land or land-rich assets that were held on 5 April 2019.

• The rebasing rules in Parts 2, 3 or 4 of the Schedule apply on the first occasion a person disposes of an asset held on 5 April 2019, provided the disposal is a direct or indirect disposal of UK land made by a non-resident or a UK resident in the overseas part of a tax year.
• A direct disposal of UK land means a disposal of an interest in UK land itself, while an indirect disposal means a disposal of another asset (such as shares) that derives at least 75% of its value from UK land, where the person has a substantial indirect interest in that land.
• The rules cover disposals giving rise to gains chargeable on non-residents under the territorial scope provisions (including non-resident individuals, split-year cases, and non-resident companies), as well as disposals where no gain actually accrues but which would have fallen within those charging provisions if a gain had arisen.
• Separate provision is made in paragraph 16 of the Schedule for cases where a non-UK resident company holding UK land becomes UK resident after 5 April 2019.