Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 3

Re-basing to 5 April 2019

Paragraph 3 establishes the default rule for calculating gains or losses on disposals of UK land-related assets held by non-residents, by re-basing the acquisition cost to the market value on 5 April 2019.

• When calculating a gain or loss on disposal, the asset is treated as having been sold and immediately reacquired at its market value on 5 April 2019.
• This means only the increase or decrease in value from 5 April 2019 onwards is brought into the capital gains calculation.
• Any gain or loss that arose before 6 April 2019 is effectively disregarded under this default approach.
• This re-basing rule does not apply if the person elects under paragraph 4 to use a retrospective basis of calculation instead.