Taxation of Chargeable Gains Act 1992 Schedule B1 paragraph 8

Disposal of a building that has undergone works

Paragraph 8 of Schedule B1 addresses how to calculate the NRCGT gain or loss when a non-resident disposes of a building that has had construction, conversion, or renovation works carried out on it during the relevant ownership period.

• Where works such as construction, conversion, or renovation have been carried out on a building before its disposal, the computation of the NRCGT gain or loss must take account of the effect those works have had on the property's value.
• The calculation involves comparing the disposal proceeds with the sum of the property's value at the start of the relevant period (5 April 2015 or acquisition date, if later) plus any allowable expenditure on the works themselves.
• If the works were carried out partly before and partly after the relevant starting date, only the portion of expenditure attributable to the period from that date onwards is brought into the computation.
• This provision ensures that value created by building works during the non-resident's ownership is properly captured within the NRCGT charge, while value attributable to works undertaken before the relevant period is excluded.