CG73867 | Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015 to 5 April 2019: Interaction between Non-Resident CGT and ATED-related CGT: Relevant high value disposals, changes to legislation linking with non-resident CGT provisions

- link between Sch 4ZZA (Relevant high value disposals: gains and losses) and Sch 4ZZB (Non-resident CGT disposals: gains and losses)

TCGA92/Sch 4ZZA/para 1(2) inserts an enabling provision at the start of Sch 4ZZA (which sets out the rules on relevant high value disposals), to ensure that NRCGT gains and losses are encompassed when applying the rules on ATED-related gains and losses.

- Sch 4ZZA may apply in any case where Sch 4ZZB/Part 4 in point

TCGA92/S57A(3) is concerned with cases where no ATED-related gain or loss accrues on a disposal after applying Sch 4ZZA. The fact that no such gain or loss accrues does not prevent Sch 4ZZA being applied in cases where Sch 4ZZB/Part 4 applies (Part 4 sets out the rules for non-resident CGT cases that also involve relevant high value disposals).

- elections on method of computation under Sch 4ZZB may apply for Sch 4ZZA also

TCGA92/Sch 4ZZA/para 5(3A) links with provisions in Sch 4ZZB/Part 2. Sch 4ZZA/para 5(3A) applies where a person makes an election under Sch 4ZZB/para 2(1)(b) to compute gains or losses on a disposal of UK residential property interests on the basis of the position over their whole period of ownership. It provides that such an election applies for the purposes of Sch 4ZZA as well as Sch 4ZZB for computing liability in relation to the asset in question.

- use of non-resident CGT losses against ATED-related gains

TCGA92/S2B(10)* sets out an amended definition of “ring-fenced ATED-related allowable losses”. This has the effect that allowable losses used against non-resident CGT gains cannot also be used against chargeable ATED-related gains.

* This section was re-written for disposals from 6 April 2019 see CG10150