CG73962 - NRCG and the exemptions: Disposals from 6 April 2019: Computational rules for CGT from 6 April 2019: CGT – Computation - Direct disposals of pre-April 2015 assets fully chargeable before 6 April 2019

TCGA1992\Sch4AA Part 3 - paras 6 to 11

An asset is fully chargeable if in the period from 6 April 2015 (or acquisition if later) to 5 April 2019 on every day in the period the land to which the disposal relates consisted of a dwelling.

If the interest in land subsisted under a contract for the acquisition of land that at any time before 6 April 2019 did not consist of or include a building to be constructed or adapted for use as a dwelling, the disposal is taken not to be fully residential before that date.

In calculating the gain or loss on a disposal it is assumed that the asset was disposed of and immediately reacquired at its market value on 5 April 2015.

An election can be made for this rebasing not to apply. Such an election should state which of either the retrospective basis or time-apportionment method of computation should apply.

Where an election under para 8 for the retrospective basis to apply is made, rebasing to 5 April is ignored and the gain or loss is calculated with the original acquisition cost (or rebasing to 31/3/82 if relevant).

Where an election under para 9 for the time-apportionment basis to apply is made, rebasing to 5 April is ignored and the gain or loss is calculated with the original acquisition cost (or rebasing to 31/3/82 if relevant). The result of this computation is then time apportioned. The gain that relates to the post 5 April 2015 period is charged.

Example

Disposal made in May 2019 (1500 days after 5 April 2015) and acquisition February 2011 (1500 days before in 6 April 2015). Gain before any apportionment £1,000.

The post 5 April 2015 proportion of the gain would be £500

i.e. 1,000 x (1,500/(1,500 + 1,500))