Taxation of Chargeable Gains Act 1992 Schedule B1 paragraph 1

Meaning of "disposal of a UK residential property interest"

Schedule B1 paragraph 1 defines what constitutes a "disposal of a UK residential property interest" for the purposes of the chargeable gains tax rules, as amended by Finance Act 2019.

• A disposal of a UK residential property interest is a key concept introduced to bring certain property disposals within the charge to capital gains tax, particularly for non-residents.
• The definition encompasses disposals of interests in UK land where the property derives its value, in whole or in part, from residential property.
• The Finance Act 2019, section 13 and Schedule 1 paragraph 10, amended these provisions to extend the scope of UK property gains chargeable on non-residents to include all UK land, not just residential property.
• Understanding whether a disposal falls within this definition is essential, as it determines reporting obligations and the tax treatment applicable to the gain.

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