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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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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 £2 million threshold 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, or
    • 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.