C1.108 Residential property gains
For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.104, C1.103 and C1.102 respectively.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
This article discusses the definition of residential property gains. For the computation of chargeable gains and losses, see C1.105. For the use of allowable losses, see C1.106.
Why is the definition of residential property gains important?
Determining the amount of residential property gains is important:
• as individuals, trustees and personal representatives are subject to a higher rate of capital gains tax on residential property gains (see C1.107)1
• to calculate the amount of the chargeable gain arising under the non-resident capital gains tax (NRCGT) regime that applies from 6 April 2019 onwards (also known as the NRCGT 2019 regime, see C2.1139). This is because if the direct holding of UK land were acquired before 6 April 2019, the calculation of the gain may depend on whether or not it is a UK residential property gain and as such was chargeable under the NRCGT regime that applied between 6 April 2015 and 5 April 2019 (also known as the NRCGT 2015 regime) (see C2.1148 and C2.1149)2
• as under the NRCGT 2015 regime only direct holdings of UK residential property were chargeable (see C2.1130)3
Definition of residential property gains has
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