Taxation of Chargeable Gains Act 1992 section 151R

Diminishing shared ownership arrangements

Section 151R identifies which payments made by the customer under diminishing shared ownership arrangements qualify as alternative finance return, and which payments are excluded from that treatment.

• Payments made by the customer under diminishing shared ownership arrangements are generally treated as alternative finance return for capital gains tax purposes.
• Payments that represent the purchase price for acquiring the financier's beneficial interest in the asset are excluded from being alternative finance return.
• Payments that cover arrangement fees, legal costs, or other expenses the customer is required to pay under the arrangements are also excluded from being alternative finance return.
• The term "customer" takes its meaning from section 151K or section 151KA, which set out the rules for diminishing shared ownership arrangements and their refinancing.