Taxation of Chargeable Gains Act 1992 Schedule 4AA paragraph 9

Election for straight-line time apportionment

Paragraph 9 allows a person disposing of UK land to elect for a straight-line time apportionment method instead of the default rebasing to 5 April 2015, so that only the portion of the total gain or loss attributable to the period after 5 April 2015 is brought into charge.

• The person may elect to disapply the deemed sale and reacquisition at market value on 5 April 2015 that would otherwise apply under paragraph 7.
• Instead, the total gain or loss on disposal is apportioned on a straight-line time basis, and only the post-5 April 2015 proportion is treated as accruing.
• The post-5 April 2015 proportion is calculated by dividing the number of days from 6 April 2015 to the date of disposal by the total number of days in the ownership period.
• The ownership period runs from the date the person acquired the asset (or 31 March 1982, if later) to the date of disposal.