CG73926 - NRCG and the exemptions: Disposals from 6 April 2019: Dwelling and disposing of residential property

A person disposes of residential property where:

• The land consisted or included a residential property at any time during the applicable period.
• The interest on land subsisted for the benefit of land that consisted of or included a dwelling at any time during the applicable period.
• The interest in land subsists under a contract for the acquisition of land consisting or including a building that is to be constructed or adapted for use as a dwelling.

The definition of dwelling for the Schedule is widely cast (TCGA92/SchB1 para 5) and applies where the building is used or suitable for use as a dwelling or is in the process of being constructed or adapted for use as a dwelling e.g. an off-plan purchase.

Land that at any time is, or is intended to be occupied or enjoyed with a dwelling as garden or grounds (including any building or structure) is taken to form part of the dwelling at that time.

Specific exclusions from the definition of dwelling apply for institutional buildings (CG73928). The exclusion only impacts the rate of CGT that can apply to the gains.