Taxation of Chargeable Gains Act 1992 section Sch 4ZZA para 8

Wasting assets

Schedule 4ZZA paragraph 8 deals with how the capital gains tax rules on wasting assets apply when a person holds an asset as a non-resident and later becomes UK resident.

• Wasting assets are those with a predictable useful life of 50 years or less, where allowable cost is written down over the asset's life when calculating a chargeable gain.
• When a person rebases an asset to its April 2019 value on becoming UK resident, the normal wasting asset rules apply but with a modified starting point reflecting the rebased value and the remaining life of the asset at that date.
• The write-down of cost for a wasting asset is calculated from the rebasing date rather than from the original date of acquisition, ensuring that only the portion of the asset's life during which the person is within the UK tax net is relevant.
• This provision was introduced by the Finance Act 2019 as part of the reforms to the taxation of gains on UK property held by non-residents.