Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 7

Re-basing to 5 April 2015

Paragraph 7 establishes the default method for calculating gains or losses on disposals of pre-April 2015 assets by non-residents, using a re-basing approach that treats the asset as having been acquired at its 5 April 2015 market value.

• When a non-resident disposes of a pre-April 2015 UK land asset, the default rule is to re-base the asset to its market value on 5 April 2015.
• The calculation assumes a notional sale and immediate reacquisition at market value on that date, so only gains or losses arising after 5 April 2015 are brought into charge.
• This default re-basing can be overridden if the person elects for one of two alternative calculation methods: a retrospective basis or a straight-line time apportionment basis.
• Only one election can be made — the person cannot use both alternative methods simultaneously.