F1SCHEDULE 4ZZCDisposals of residential property interests: gains and losses
PART 3RPI disposals involving relevant high value disposals
Computation of balancing gains or losses on relevant high value disposal within Case 1, 2 or 3 (and no election made)
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(1)
The amount of the balancing gain or loss on a relevant high value disposal to which paragraph 11 applies is found by adding—
(a)
the amount of the balancing gain or loss belonging to the notional pre-ATED gain or loss, and
(b)
the amount of the balancing gain or loss belonging to the notional post-ATED gain or loss,
(treating any amount which is a loss as a negative amount).
(2)
If the result is a positive amount, that amount is the balancing gain on the relevant high value disposal.
(3)
If the result is a negative amount, that amount (expressed as a positive number) is the balancing loss on the relevant high value disposal.
(4)
The balancing gain or loss belonging to the notional pre-ATED gain or loss is equal to the balancing fraction of the notional pre-ATED gain or loss.
(5)
The balancing gain or loss belonging to the notional post-ATED gain or loss is equal to the balancing fraction of the notional post-ATED gain or loss.
(6)
The balancing fraction is—
where—
“BD” is the number of balancing days in the appropriate ownership period;
“TD” is the total number of days in the appropriate ownership period.
(7)
“Balancing day” means a day which is neither—
(a)
a residential property chargeable day, nor
(b)
an ATED chargeable day (as defined in paragraph 3 of Schedule 4ZZA).
(8)
The appropriate ownership period is—
(a)
for the purpose of computing the balancing gain or loss belonging to the notional pre-ATED gain or loss, the relevant ownership period mentioned in paragraph 13(4);
(b)
for the purpose of computing the balancing gain or loss belonging to the notional post-ATED gain or loss, the relevant ownership period mentioned in paragraph 14(4).
(9)
In this paragraph—
“notional pre-ATED gain or loss” means the same as in paragraph 13(2);
“notional post-ATED gain or loss” means the same as in paragraph 14(2).