Taxation of Chargeable Gains Act 1992 Schedule 4ZZA paragraphs 2-4

Assets held on 5 April 2013, 5 April 2015 or 5 April 2016: no paragraph 5 election

Paragraphs 2 to 4 of Schedule 4ZZA set out how to calculate chargeable gains or allowable losses on disposals of assets by non-residents who held those assets on specific historic dates (5 April 2013, 5 April 2015 or 5 April 2016), where no rebasing election under paragraph 5 has been made.

• Where no rebasing election is made, the default method for computing gains or losses involves comparing the disposal proceeds with the original acquisition cost, but with a restriction so that only the portion of the gain accruing from the relevant rebasing date onwards is chargeable.
• The relevant rebasing date depends on the type of asset: 5 April 2015 applies to residential property interests, 5 April 2019 applies to other property interests, and 5 April 2013 applies where ATED-related gains provisions are in point.
• If the normal computation produces a gain but the rebased computation (using market value at the relevant date) produces a loss, or vice versa, the result is treated as neither a gain nor a loss — effectively a nil outcome.
• These rules were introduced by Finance Act 2019 as part of the extension of the capital gains tax charge to non-UK residents disposing of all types of UK land, not just residential property.

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