CG73669 | Dwellings subject to ATED: interaction with capital allowances

Sch 4ZZA/para 9 explains how Capital Allowances should be taken into account when calculating gains and losses accruing on relevant high value disposals.

It addresses the case where computation is being made of -

• the notional post-commencement gain or loss accruing to a person on an ATED-related disposal in accordance with Sch 4ZZA/para 3(2), or

• the notional pre-April 2015 gain or loss accruing to a person on a disposal in accordance with Sch 4ZZA/para 6A(9);

and it is to be assumed in the computation that an asset was acquired by a person on 5 April 2013 for a consideration equal to its market value on that date.

For the purposes of that computation, the provisions of TCGA92/S41 (restriction of losses by reference to capital allowances etc) and S47 (wasting assets qualifying for capital allowances) are to apply in relation to any capital allowance or renewals allowance made in respect of the expenditure incurred by the person in acquiring or providing the asset, as if that allowance were made in respect of the expenditure treated as incurred by the person on 5 April 2013.