Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 14

Election for retrospective basis of calculation

Paragraph 14 allows a person to elect out of the rebasing rules, so that the gain or loss on a disposal of UK land is calculated on the full historical cost basis rather than by reference to the deemed sale and reacquisition values at 5 April 2015 or 5 April 2019.

• A person disposing of UK land that was held on 5 April 2019 may make an election under this paragraph.
• The effect of the election is to disapply the rebasing assumptions in paragraph 13, under which the asset is treated as sold and reacquired at market value on specified dates.
• Where the election is made, the gain or loss is calculated on a retrospective (i.e. original acquisition cost) basis, potentially covering the entire period of ownership.
• This election may be beneficial where the retrospective calculation produces a smaller gain or a larger loss than the rebased calculation would.