CG73922 | NRCG and the exemptions: Disposals from 6 April 2019: Interests in UK land

For the purposes of NRCGT and NRCG an interest in UK land is defined in TCGA92/S1C(1) as:

(a) an estate, interest, right or power in or over land in the United Kingdom, or

(b) the benefit of an obligation, restriction or condition affecting the value of an estate, interest, right or power in or over land in the United Kingdom, other than an excluded interest.

From this wide definition the following are excluded from scope (TCGA92/S1C(2):

(a) any interest or right held for securing the payment of money or the performance of any other obligation,

(b) a licence to use or occupy land,

(c) in England and Wales or Northern Ireland, a tenancy at will or an advowson, franchise or manor, and

(d) such other descriptions of interest or right in relation to land in the United Kingdom as may be specified in regulations made by the Treasury.

But an interest or right is not within subsection (2)(a) if it is:

(a) a rentcharge, or (b) in Scotland, a feu duty or a payment mentioned in section 56(1) of the Abolition of Feudal Tenure etc (Scotland) Act 2000.

The remainder of S1C is as follows:

(4) The grant of an option by a person binding the person to dispose of an interest in UK land is (so far as it would not otherwise be the case) regarded as a disposal of an interest in UK land by the person for the purposes of section 1A(3)(b).

(5) This does not affect the operation of section 144 in relation to the grant of the option (or otherwise).

(6) In this section— “franchise” means a grant from the Crown such as the right to hold a market or fair, or the right to take tolls, and “land” includes—

(a) buildings and structures, and

(b) land under the sea or otherwise covered by water.