Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 5

Calculation of residential property gain if election made under paragraph 4

Section 5 of Schedule 4AA explains how to calculate the residential property gain on a disposal of UK land where a non-resident has elected under paragraph 4 to use the retrospective basis of calculation rather than the default rebasing to April 2019.

• Where a paragraph 4 election is made and a residential property gain needs to be determined, the calculation follows the rules in Schedule 1B but with specific modifications.
• The normal Schedule 1B rules about when the applicable period starts and when an interest in land becomes chargeable are disapplied.
• Instead, the applicable period runs from the date the person originally acquired the interest in the land (or 31 March 1982 if that is later) up to the day before the disposal takes place.
• This means the entire ownership period is taken into account when splitting out the residential property element, rather than only the period from 6 April 2019 onwards.