Taxation of Chargeable Gains Act 1992 Schedule C1 paragraphs 2–6

Main definition

Schedule C1 paragraphs 2 to 6 set out the main definition of what constitutes a UK residential property interest for the purposes of the chargeable gains rules, determining when gains on property disposals fall within the residential property regime.

• A UK residential property interest includes a disposal of UK land where the land has, at any point during the ownership period, consisted of or included a dwelling.
• The definition extends to interests held indirectly, such as through shares or other rights in property-rich entities that derive at least 75% of their value from UK residential property.
• A "dwelling" is broadly defined to include buildings used or suitable for use as a residence, together with land enjoyed with them as gardens or grounds, but excludes certain institutional properties such as hotels, hospitals and prisons.
• The ownership period for determining whether land qualifies as residential property runs from the date of acquisition (or 5 April 2015, if later) to the date of disposal.

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