Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraphs 10–11

Calculation of residential property gain if election made under paragraph 8 or 9

Schedule 4AA paragraphs 10 and 11 set out how to calculate the residential property gain element when a non-resident disposes of pre-April 2015 UK land and has elected to use either the retrospective basis or the straight-line time apportionment basis instead of the default 2019 rebasing.

• Where an election is made under paragraph 8 (retrospective basis) or paragraph 9 (straight-line time apportionment), specific modifications apply to the way the residential property gain is calculated under Schedule 1B.
• Under both elections, the normal rules about when an interest in land first became chargeable to capital gains tax are disregarded for the purpose of identifying the applicable period.
• For a paragraph 8 election, the applicable period runs from the date the land was originally acquired (or 31 March 1982 if later) to the day before disposal — covering the entire ownership period.
• For a paragraph 9 election, the applicable period runs from 6 April 2015 to the day before disposal — reflecting the date from which non-resident gains on residential property first became chargeable.

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