Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 4

Election for retrospective basis of calculation

Section 4 allows a person to elect out of the 5 April 2019 rebasing rule, so that gains or losses are calculated by reference to the original acquisition cost rather than the market value on 5 April 2019, but any resulting loss on an indirect disposal of UK land is disallowed.

• A person may elect for the 5 April 2019 rebasing assumption not to apply to their disposal
• Where the election is made, the gain or loss is calculated using the original acquisition cost of the asset rather than its market value on 5 April 2019
• If the election is made and a loss arises on an indirect disposal of UK land, that loss cannot be treated as an allowable loss
• The election effectively provides a retrospective basis of calculation, which may be beneficial where the asset has increased in value since original acquisition but decreased since 5 April 2019