Taxation of Chargeable Gains Act 1992 Schedule 1B paragraph 1

Meaning of "residential property gain"

Schedule 1B paragraph 1 defines what constitutes a "residential property gain" for the purposes of capital gains tax.

• A residential property gain is a specific proportion of a chargeable gain arising from the disposal of residential property.
• The proportion of any gain that qualifies as a residential property gain is calculated according to the rules in paragraph 2 of Schedule 1B.
• Whether a disposal counts as a disposal of residential property is determined by the criteria set out in paragraphs 3 to 7 of Schedule 1B.
• This definition is important because residential property gains are subject to different capital gains tax rates than gains on other types of asset.