Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 8

Election for retrospective basis of calculation

Section 8 allows a person to elect out of the default rebasing to 5 April 2015, so that the gain or loss on disposal of UK land is instead calculated by reference to the original acquisition cost.

• By default, UK land held by non-residents before 6 April 2015 is treated as sold and reacquired at market value on 5 April 2015 (the rebasing rule in paragraph 7).
• Paragraph 8 gives the person the right to elect out of this rebasing assumption.
• If the election is made, the gain or loss is calculated using the original acquisition cost rather than the 5 April 2015 market value.
• This may be beneficial where the asset has fallen in value since 5 April 2015, or where the original cost base produces a more favourable result.