Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 2

Introduction

Paragraph 2 of Schedule 4AA sets out which types of UK land disposals are subject to the rebasing rules in Part 1 of the Schedule, distinguishing between indirect disposals, direct disposals of non-residential land, and disposals by persons who were not previously within the charge to capital gains tax.

• The rebasing rules apply to all indirect disposals of UK land, direct disposals of UK land that was not fully residential before 6 April 2019, and direct disposals by persons who were not chargeable before that date.
• A direct disposal is treated as "not fully residential" before 6 April 2019 if, throughout the period from acquisition (or 6 April 2015 if later) to 5 April 2019, the land never consisted of or included a dwelling — though land under a pre-April 2019 contract for a building to be constructed or adapted as a dwelling is treated as fully residential.
• A person was "not chargeable" before 6 April 2019 if, immediately before that date, they were a non-closely-held company, a widely-marketed scheme, or a life assurance company holding the land for policyholders' benefits.
• Any arrangements whose main purpose (or one of whose main purposes) is to secure a tax advantage by ensuring a person qualifies as non-closely-held or as a widely-marketed scheme must be disregarded when applying these tests.