Taxation of Chargeable Gains Act 1992 Schedule 4ZZA paragraph 6

Cases where election made or none of Cases 1 to 3 apply

Paragraph 6 of Schedule 4ZZA deals with situations where either the taxpayer has made an election or none of the standard computational cases (Cases 1 to 3) apply, providing a default method for calculating gains or losses on the disposal of assets held before April 2019.

• Where none of the three standard computational cases apply to a disposal, or where the taxpayer has made an election, paragraph 6 provides an alternative basis for working out the chargeable gain or allowable loss.
• This paragraph acts as a catch-all provision, ensuring that there is always a method available to compute the gain or loss on a disposal, even when the circumstances do not fit neatly into Cases 1, 2 or 3.
• An election under this paragraph allows taxpayers to choose this alternative computational method rather than being subject to whichever of Cases 1 to 3 would otherwise have applied to their disposal.
• This provision was introduced by the Finance Act 2019 as part of the reforms to the taxation of chargeable gains, specifically through Schedule 1, paragraph 18 of that Act.

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