Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 19

Wasting assets

Paragraph 19 ensures that when rebasing rules apply to a disposal of UK land by a non-resident, the rebasing date is not used to determine whether the asset qualifies as a wasting asset.

• This rule applies where gains or losses are calculated under the rebasing provisions of paragraphs 3, 7 or 13 of Schedule 4AA.
• A wasting asset is one with a predictable useful life of 50 years or less, and special rules apply to how allowable costs are written down over the asset's life.
• When deciding whether an asset is a wasting asset, the deemed acquisition date used for rebasing purposes must be ignored; the actual acquisition date is used instead.
• This prevents the rebasing assumptions from artificially shortening the asset's remaining useful life and incorrectly turning it into a wasting asset, or vice versa.