CG73667 - Dwellings subject to ATED: interaction with wasting assets rules

Sch 4ZZA/para 8 explains how Wasting Assets should be taken into account when calculating gains and losses accruing on relevant high value disposals.  It addresses the question of whether the interest which is the subject of the disposal is a wasting asset, when computing the notional post-commencement gain or loss accruing to a person on an ATED-related disposal.  The assumption in Sch 4ZZA/para 3(2) that the interest was acquired on a particular 5 April is to be ignored in determining that question.

 

A similar rule applies where it is necessary to determine whether the interest which is the subject of the disposal is a wasting asset, when computing the notional pre-April 2015 gain or loss accruing to a person on an ATED-related disposal.  The assumption in Sch 4ZZA/para 6A(9) that the interest was acquired on 5 April 2013 is to be ignored in determining that question.

 

“Wasting assets” follow the definition in TCGA92/Chapter 2 Part 2.