CG73618 | Dwellings subject to ATED: relevant high value disposal: condition B - single-dwelling interest

Condition B for a disposal to be a ‘relevant high value disposal’ is that the chargeable interest disposed of has been, or has been part of, a ‘single-dwelling interest’ at some time during the ‘relevant ownership period’ (see below) of the person making the disposal. A single-dwelling interest for capital gains tax purposes is whatever a single-dwelling interest is for ATED purposes.

Broadly, a single-dwelling interest for ATED purposes is, as the name implies, an interest in a single dwelling. A dwelling may be a building or part of a building and it includes any garden or grounds occupied or enjoyed with the dwelling. Simple examples of a single-dwelling interest are a freehold interest in a house and garden or a leasehold interest in a flat.

If the person’s interest in land and buildings comprises more than one dwelling the interest is split for ATED purposes and the person is treated as having a different single-dwelling interest in each of the separate dwellings comprised in the wider interest. For example, if a person owns the freehold interest in a block of 10 flats they are treated as having a separate single-dwelling interest in each of the 10 flats. ATED is chargeable in respect of each of those 10 separate interests, if the interest exceeds the threshold amount and all other conditions for ATED to apply are met.

Similarly, if a person’s chargeable interest comprises a dwelling and some non-residential land or buildings they are treated for ATED purposes as having a single-dwelling interest in the dwelling (including its garden etc) and a separate interest - which is not a single-dwelling interest - consisting of the rest of the wider chargeable interest.

For a full explanation of what is a single-dwelling interest, see for further guidance.

Relevant ownership period

Condition B is not met unless the interest the person disposes has been (or has been part of) a single-dwelling interest at some time during the relevant ownership period. The relevant ownership period is the period—

• beginning on:-

• 6 April 2013 where the £2,000,000 threshold amount applies

• 6 April 2015 where the £1000,000 threshold amount applies

• 6 April 2016 where the £500,000 threshold amount applies

or in all cases

• if later, the date on which P acquired the chargeable interest, or

• where an election is made under TCGA92/Sch4ZZA para 5 (see CG73626 and CG73638), the date on which P acquired the chargeable interest (or 31 March 1982 if that is later)

and

• ending on the day before the day on which the relevant high value disposal occurs.