Taxation of Chargeable Gains Act 1992 Schedule 5BA paragraph 5

Gains on disposal of business or non-business assets

Paragraph 5 of Schedule 5BA sets out how chargeable gains on the disposal of assets are calculated differently depending on whether the assets are used for business or non-business purposes.

• When an asset has been used wholly for business purposes throughout the ownership period, the full chargeable gain qualifies for any relevant relief or special treatment under the schedule.
• When an asset has been used wholly for non-business purposes, the gain does not qualify for the favourable treatment and is subject to the standard chargeable gains rules.
• Where an asset has been used partly for business and partly for non-business purposes, the gain must be apportioned on a just and reasonable basis between the business and non-business elements.
• The business element of the gain receives the favourable treatment available under the schedule, while the non-business element is treated as an ordinary chargeable gain.