Taxation of Chargeable Gains Act 1992

[F1 225C Sale of private residence under certain agreements with employer, etc U.K.

(1) This section applies where—

(a) an individual disposes of, or of an interest in, a dwelling-house or a part of a dwelling-house which is the individual’s only or main residence (“the initial disposal”),

(b) the individual does so as a consequence of a change to the situation of the individual’s place of work or that of a co-owner of the dwelling-house or the interest, being a change that is required by the employer of the individual or the co-owner, and

(c) the initial disposal is under a home purchase agreement.

(2) If—

(a) under the terms of the agreement the individual receives, within three years of the initial disposal, a share of any profit made by the purchaser upon the purchaser’s disposal of, or of an interest in, the dwelling-house or part of the dwelling-house, and

(b) the receipt of that sum would be treated (apart from this section) as a disposal falling within section 22 (disposal where capital sums derived from assets),

that receipt shall be treated for the purposes of this Act as a gain attributable to the initial disposal but accruing to the individual at the time the sum is received.

(3) In this section—

• “home purchase agreement” means an agreement—

  (a)

  made with the employer or a person operating under an agreement with the employer (“the purchaser”),

  (b)

  which includes a term entitling the individual to receive a share of any such profit as is mentioned in subsection (2)(a);

• “co-owner”, in relation to any individual (“A”), means another individual who holds an interest jointly or in common with A, whether or not the interests of the co-owners are equal.]

Textual Amendments

F1 S. 225C inserted (with effect in accordance with art. 10(2) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2009 (S.I. 2009/730), arts. 1(1), 10(1)