Taxation of Chargeable Gains Act 1992 section 25ZA

Postponing gain or loss under section 25(3): interests in UK land

Section 25ZA allows gains or losses arising on a deemed disposal of UK land interests (under the non-resident deemed disposal rules) to be postponed until the land is actually sold.

• Where a deemed disposal of an interest in UK land occurs under the non-resident rules, any gain or loss does not accrue at that time but is instead postponed until a real disposal takes place.
• On a subsequent actual disposal of all or part of the UK land interest, the postponed gain or loss (or a proportionate part) is treated as accruing at that point, in addition to any gain or loss arising on the actual disposal itself.
• Intra-group transfers that qualify for no gain/no loss treatment do not count as a subsequent disposal for these purposes, so the postponed gain or loss continues to be deferred.
• A person may elect to opt out of the postponement rules, in which case the gain or loss accrues at the time of the deemed disposal; a company must make this election within two years of the deemed disposal date.