Taxation of Chargeable Gains Act 1992 Schedule B1 paragraph 9

Retrospective planning permission or development consent

Schedule B1 paragraph 9 deals with how the ATED-related capital gains tax charge applies when planning permission or development consent is granted retrospectively, after a disposal has already taken place.

• Where planning permission or development consent is granted after a property disposal has already occurred, the gain may need to be recalculated to reflect the permission that was subsequently obtained.
• If retrospective permission increases the value of the property at the time of disposal, the chargeable gain is recalculated as though the permission had been in place at the date of disposal.
• The taxpayer must notify HMRC and submit an amended return within specified time limits once retrospective permission or consent is granted.
• This provision ensures that ATED-related gains cannot escape the higher rate of tax simply because planning permission was formally granted after the disposal was completed.