SCHEDULES

F1SCHEDULE 4ZZBNon-resident CGT disposals: gains and losses

PART 4Cases involving relevant high value disposals

Certain disposals after 5 April 2016 (computation involving additional rebasing in 2016)

15

(1)

This paragraph applies where—

(a)

the disposed of interest was held by P on 5 April 2016,

(b)

the relevant high value disposal falls within Case 3 for the purposes of Schedule 4ZZA (see paragraph 2(4) of that Schedule), and

(c)

no election is or has been made (or treated as made) by P under paragraph 2(1)(b) in respect of the asset.

(2)

The NRCGT gain or loss accruing on the relevant high value disposal is computed as follows.

  • Step 1 Determine the amount equal to the special fraction of the notional post-April 2016 gain or loss (as the case may be).

  • Step 2 Determine the amount equal to the special fraction of the notional pre-April 2016 gain or loss (as the case may be).

  • Step 3 Add—

    1. (a)

      the amount of any gain or loss determined under Step 1, and

    2. (b)

      the amount of any gain or loss determined under Step 2,

    (treating any amount which is a loss as a negative amount). If the result is a positive amount, that amount is the NRCGT gain on the relevant high value disposal. If the result is a negative amount, that amount (expressed as a positive number) is the NRCGT loss on the relevant high value disposal.

(3)

“The special fraction” is—

SD TD

where—

“SD” is the number of section 14D chargeable days (see paragraph 12(5)) in the relevant ownership period;

“TD” is the total number of days in the relevant ownership period.

(4)

The “relevant ownership period” is—

(a)

for the purpose of computing under Step 1 of sub-paragraph (2) the special fraction of the notional post-April 2016 gain or loss, the period beginning with 6 April 2016 and ending with the day before the day on which the relevant high value disposal occurs;

(b)

for the purpose of computing under Step 2 of sub-paragraph (2) the special fraction of the notional pre-April 2016 gain or loss, the period beginning with the day on which P acquired the disposed of interest or, if later, 6 April 2015 and ending with 5 April 2016.

(5)

“Notional post-April 2016 gain or loss” means the gain or loss which would have accrued on the relevant high value disposal had P acquired the disposed of interest on 5 April 2016 for a consideration equal to its market value on that date.

(6)

If the disposed of interest was not held by P on 5 April 2015, “notional pre-April 2016 gain or loss” means the gain or loss which would have accrued on 5 April 2016 had the disposed of interest been disposed of for a consideration equal to the market value of the interest on that date.

(7)

If the disposed of interest was held by P on 5 April 2015, “notional pre-April 2016 gain or loss” means the gain or loss which would have accrued to P on the disposal mentioned in paragraph (b), had P—

(a)

acquired the disposed of interest on 5 April 2015 for a consideration equal to the market value of that interest on that date, and

(b)

disposed of that interest on 5 April 2016 for a consideration equal to the market value of that interest on that date.