Taxation of Chargeable Gains Act 1992 Schedule 1B paragraph 3

Disposing of residential property

Schedule 1B paragraph 3 defines what it means to "dispose of residential property" for the purposes of capital gains tax, setting out the conditions under which a disposal of an interest in land counts as a residential property disposal.

• A disposal counts as a residential property disposal if the land included a dwelling at any time during the applicable period up to (but not including) the day of disposal.
• It also counts if the interest in land existed for the benefit of other land that included a dwelling during that same period.
• A disposal similarly qualifies where it relates to a contract to acquire land on which a building is to be constructed or converted into a dwelling.
• Events occurring on or after the actual day of disposal are disregarded when determining whether the land included a dwelling.

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