Taxation of Chargeable Gains Act 1992 Schedule 4ZZC paragraph 4

Computation of residential property gains and losses

Schedule 4ZZC paragraph 4 explains how to calculate the amount of a chargeable gain or allowable loss that counts as a "residential property gain" or "residential property loss" when a disposal involves property that is only partly residential.

• Where a chargeable gain arises on the disposal of a residential property interest, the entire gain is treated as a residential property gain; where an allowable loss arises, the entire loss is treated as a residential property loss.
• If the asset disposed of is only partly a residential property interest, the gain or loss must be apportioned on a just and reasonable basis between the residential and non-residential elements.
• The residential portion of an apportioned gain is the residential property gain, and the residential portion of an apportioned loss is the residential property loss.
• These rules apply specifically to gains and losses that have already been computed under the standard chargeable gains rules before the residential property classification is overlaid.

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