CG73891 - Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Interaction between Non-Resident CGT and ATED-related CGT: Post April 2016 disposals computations, example
This example follows on from example 3 at CG73628 in the ATED-related CGT guidance. It shows how to calculate the NRCGT gain or loss on that disposal after calculating the ATED-related gain or loss.
Basic information:
Residential property acquired April 2010 for £300,000 and disposed of 7 April 2018 for £700,000.
The property had a value of £500,000 at 5 April 2015 and £550,000 at 5 April 2016.
Estimated Indexation factors are:
April 2015 to April 2016 0.013
April 2016 to April 2018 0.019
Total number of days chargeable to ATED (assumed) 200
Total days 6 April 2016 to day preceding disposal 730
Step 1
Determine the amount equal to the special fraction of the notional post-April 2016 gain or loss
Disposal proceeds £700,000
Market value at 5 April 2016 £550,000
Indexation allowance £10,450
Post-April 2016 gain £139,550
SD = 530
TD = 730
SD/TD x Post-April 2016 gain = £101,317
Step 2
Determine the amount equal to the special fraction of the notional pre-April 2016 gain or loss
Asset was held at 5 April 2015 so the pre-April 2016 gain or loss is the gain or loss which accrued between 5 April 2015 and 5 April 2016.
Market value at 5 April 2016 £550,000
Market value at 5 April 2015 £500,000
Indexation allowance £6,500
Pre-April 2016 gain £43,500
SD = 365
TD = 365
SD/TD x gain = £43,500
Step 3
Add Step 1 to Step 2
Step 1 £101,317
Step 2 £43,500
NRCGT gain £144,817
See CG73894 for how to calculate the gain or loss that is neither ATED-related nor an NRCGT gain or loss.