Taxation of Chargeable Gains Act 1992 Schedule 4ZZB paragraph 9

Cases where asset acquired after 5 April 2015 or election made under paragraph 2(1)(b)

Paragraph 9 of Schedule 4ZZB deals with how to calculate the chargeable gain or allowable loss on disposals of assets that were either acquired after 5 April 2015 or where the taxpayer has elected to use the retrospective basis of computation under paragraph 2(1)(b).

• This paragraph applies where a non-resident disposes of a UK property interest and either acquired the asset after 5 April 2015 or has elected to use the retrospective basis of calculation.
• Where the asset was acquired after 5 April 2015, the normal chargeable gains rules apply without any rebasing or time-apportionment adjustments — the full gain or loss over the entire period of ownership is brought into charge.
• Where the taxpayer has elected for retrospective treatment under paragraph 2(1)(b), the same outcome applies: the gain or loss is computed by reference to the original acquisition cost rather than a rebased April 2015 value.
• This approach means the entire economic gain or loss from the date the asset was originally acquired is subject to capital gains tax, which may be advantageous where there has been a loss or minimal gain over the full ownership period.