Taxation of Chargeable Gains Act 1992 Schedule 4ZZA paragraph 5

Election for paragraphs 2 to 4 not to apply to a chargeable interest

Paragraph 5 of Schedule 4ZZA allows a person to elect that the special rebasing and computational rules in paragraphs 2 to 4 of the Schedule should not apply to a particular chargeable interest in UK land.

• A person who holds a chargeable interest in UK land may elect to disapply the rebasing provisions that would otherwise reset the base cost of that interest to its April 2019 market value.
• Where such an election is made, the normal capital gains tax rules apply instead, meaning the original acquisition cost and any prior expenditure are used when computing any gain or loss on disposal.
• The election is made in respect of a specific chargeable interest and, once made, is irrevocable — it cannot be withdrawn or amended after the relevant deadline.
• This election may be beneficial where the original base cost of the interest is higher than the April 2019 market value, since using the original cost would produce a smaller chargeable gain or a larger allowable loss.

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