Taxation of Chargeable Gains Act 1992

[F1 Attribution of gain to residential property U.K.

Textual Amendments

F1 Sch. 1B inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 15

2 (1) The proportion of a chargeable gain attributable to residential property is equal to— U.K.

(a) the relevant fraction of the gain, and

(b) if there has been mixed use of the land to which the disposal relates on one or more days in the applicable period, the relevant fraction of the gain as adjusted, on a just and reasonable basis, to take account of the mixed use on the day or days.

(2) The relevant fraction is A/B where—

• A is the number of days in the applicable period on which the land to which the disposal relates consists of or includes a dwelling, and

• B is the total number of days in the applicable period.

(3) There is mixed use of land on any day on which the land consists of—

(a) one or more dwellings, and

(b) other land.

(4) If the disposal is of an interest in land subsisting under a contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling, that land is taken to consist of or include a dwelling throughout the applicable period.

(5) In this paragraph “the applicable period” means the period—

(a) beginning with the day on which the person making the disposal acquired the interest in land being disposed of or, if later, the day from which the interest in land became chargeable, and

(b) ending with the day before the day on which the disposal occurs.

(6) For the purposes of this paragraph an interest in land became “chargeable”—

(a) in any case where the disposal is of an interest in land in the United Kingdom—

(i) by a person in a tax year in which the person is not UK resident, or

(ii) by a person in the overseas part of a tax year which is, as respects the person, a split year,

from 6 April 2015, and

(b) in any other case, from 31 March 1982.

(7) If the interest in land disposed of by the person results from interests in land acquired by the person at different times, the person is regarded for the purposes of this paragraph as having acquired the interest disposed of at the time of the first acquisition.]