Commentary

C2.1146 Meaning of residential property gain

Capital gains tax
Capital gains tax | Commentary

C2.1146 Meaning of residential property gain

Capital gains tax | Commentary

C2.1146 Meaning of residential property gain

A residential property for these purposes essentially means a dwelling. A person disposes of residential property (and realises a residential property gain or loss) if the person disposes of an interest in UK land in a case where1:

  1.  

    •     the land consisted of or included a dwelling at any time falling on or after the date on which the applicable period begins (broadly, this means from 6 April 2015 or the date of acquisition, whichever is later, or in cases where an election has been made (see C2.1147–C2.1149), from the later of 31 March 1982 and the date of acquisition)

  2.  

    •     the interest in land subsisted for the benefit of land that consisted of or included a dwelling at any time falling on or after that date, or

  3.  

    •     the interest in land subsists under 'a contract for an off-plan purchase' (ie 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)

Where only a proportion of a chargeable gain is attributable to residential property, the calculation is made on a time-apportionment basis using the fraction A/B.

'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' (see below)2.

If the disposal is of an interest in land subsisting under a contract for the

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