Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 16

Companies with UK land becoming UK resident after 5 April 2019

Paragraph 16 of Schedule 4AA ensures that the rebasing rules for non-residents disposing of UK land continue to apply to a company that held UK land as a non-resident but subsequently became UK resident after 5 April 2019.

• The rule applies where a company becomes UK resident after 5 April 2019 and then makes a direct or indirect disposal of UK land.
• Without this provision, the rebasing rules in Parts 2, 3 or 4 of Schedule 4AA would not apply because the company is UK resident at the time of the disposal.
• Paragraph 16 overrides the residence condition, so the rebasing rules apply to the disposal regardless of the company's UK residence at the time of sale.
• This prevents a company from escaping the rebasing framework simply by becoming UK resident before disposing of its UK land interests.