Taxation of Chargeable Gains Act 1992 Schedule 4ZZC paragraph 18

Computation of balancing gains or losses on relevant high value disposal within Case 1, 2 or 3 (and no election made)

Paragraph 18 of Schedule 4ZZC sets out how to calculate any balancing chargeable gain or allowable loss when a relevant high value disposal falls within Case 1, Case 2 or Case 3, and no special election has been made.

• Where an ATED-related gain or loss has already been computed on a relevant high value disposal falling within Cases 1, 2 or 3, a separate balancing calculation is required to determine whether any additional chargeable gain or allowable loss arises outside the ATED-related regime.
• The balancing gain or loss is broadly the overall gain or loss on the disposal, minus the ATED-related gain (or plus the ATED-related loss) already calculated, ensuring there is no double counting.
• If the result of the balancing computation is a gain, it is treated as a chargeable gain accruing at the time of the disposal; if it is a loss, it is treated as an allowable loss arising at that time.
• This balancing calculation only applies where no election has been made under the relevant provisions to disapply or modify the standard computational rules for these cases.

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