Commentary

C2.1147 Direct disposals not chargeable before 6 April 2019

Capital gains tax
Capital gains tax | Commentary

C2.1147 Direct disposals not chargeable before 6 April 2019

Capital gains tax | Commentary

C2.1147 Direct disposals not chargeable before 6 April 2019

Broadly, this category applies to direct disposals that only became chargeable as a result of the FA 2019 changes either because the type of UK land did not consist of a dwelling prior to 6 April 2019, and was therefore not chargeable, or where the person making the disposal was previously exempt (referred to as 'qualifying institutional investors' under the previous NRCGT regime, see C2.1131).

Direct disposals of interests in UK commercial land made on or after 6 April 2019 are therefore caught by these rules. Similarly, institutional buildings that are excluded from representing a dwelling (see C1.108 for the meaning of dwelling) will also fall within this category.

Direct disposals of UK land are chargeable to tax under this category where they1:

  1.  

    •     were not fully residential before 6 April 2019, or

  2.  

    •     were made by persons who were not chargeable before 6 April 2019

For these purposes, a direct disposal is not fully residential before 6 April 2019 if in the period from the date of acquisition (or, 6 April 2015, if later) to 5 April 2019, there was no day on which the land to which the disposal relates consisted of or included a dwelling2.

If the disposal is of an interest in land subsisting under a contract for the acquisition of land that, at any time before 6 April 2019, consisted of or included a building to be constructed or adapted for use as a dwelling, the disposal is taken to

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