CG72602 | Assets held on 6 April 1965 disposed of with development value

TCGA92/SCH2/PARA9 (2)

Where land with development value is sold, and that land was held at 6 April 1965, time-apportionment, see CG15500, is not appropriate since the growth in value of the land over the period of ownership is unlikely to have been uniform. Hence, the land is deemed to have been disposed of and immediately reacquired at its market value on 6 April 1965. That value then becomes the cost for the purposes of TCGA92/S38 (1)(a) (but subject to the rebasing rules in TCGA92/S35, see CG16700C).

The detailed guidance on this topic has now been archived. If you encounter a case where land with development value, that was held at 6 April 1965, is not subject to rebasing and has been disposed of, please make a referral to CG Technical for advice or view the archived guidance.