Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 9

Cases where an asset is used at the same time for different purposes

Paragraph 9 of Schedule A1 deals with how taper relief applies when an asset is simultaneously used for both business and non-business purposes.

• Where an asset is used partly for business and partly for non-business purposes at the same time, the chargeable gain must be apportioned between the two uses on a just and reasonable basis.
• The business portion of the gain qualifies for the more generous business asset taper relief rates, while the non-business portion qualifies only for the lower non-business taper relief rates.
• The apportionment is based on the extent of business versus non-business use during the relevant period of ownership, reflecting the dual nature of the asset's use.
• This provision was amended by the Finance Act 2008, Schedule 2, paragraph 45, which formed part of the broader reform and eventual abolition of taper relief for disposals on or after 6 April 2008.