Taxation of Chargeable Gains Act 1992 section 14C

Meaning of "disposal of a UK residential property interest"

Section 14C defines what constitutes a "disposal of a UK residential property interest" for the purposes of capital gains tax, a concept introduced by Finance Act 2019 to bring certain property disposals within the charge to tax.

• A disposal of a UK residential property interest covers the sale or other disposal of property that derives its value from UK land used for residential purposes.
• The definition is relevant for determining when non-residents (and in some cases UK residents) must report and pay capital gains tax on disposals of UK residential property.
• The concept ensures that indirect disposals — for example, selling shares in a company that holds UK residential property — can also fall within the scope of the charge.
• The provision was introduced as part of the Finance Act 2019 reforms which extended capital gains tax to non-residents disposing of all types of UK land, building on the earlier regime that applied only to residential property.

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