Taxation of Chargeable Gains Act 1992 section 63A

Death: application of law in Northern Ireland

Section 63A deals with the capital gains tax consequences when a person who held a life interest in property situated in Northern Ireland dies, and that property passes to someone else.

• The section applies specifically to property in Northern Ireland that was held under a life interest by the deceased person.
• When the life interest holder dies, the person who inherits the property is treated as having acquired it at the date of death.
• The acquisition cost for capital gains tax purposes is deemed to be the market value of the assets at the date of death, providing a tax-free uplift in base cost.
• This provision applies to deaths occurring on or after 6 April 2006 and reflects the distinctive land law system that operates in Northern Ireland.