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HMRC internal manual

Capital Gains Manual

Non-Resident Capital Gains Tax (NRCGT) – Disposals on or after 6 April 2015: Interaction between Non-Resident CGT and ATED-related CGT: Sch 4ZZB/Part 4, NRCGT disposals in cases involving relevant high value disposals

Sch 4ZZB/Part 4 contains special computation rules for non-resident CGT disposals which are, or involve, disposals where gains are chargeable to ATED-related CGT.  Sch 4ZZB/para 11 provides an overview to Part 4, and briefly outlines the issues that are addressed in TCGA92/Sch 4ZZB/paras 12 to 20.

 

Sch 4ZZB/para 12 sets out the approach for determining the amount of non-resident CGT gain or loss where a person (other than an “excluded person”, as defined in TCGA92/S2B(2)) makes a non-resident CGT disposal of an interest (or part of an interest) in UK land in cases involving one or more relevant high value disposals.

 

The procedure is -

  • Step 1, determine in accordance with paragraphs 13 to 15 the amount of the NRCGT gain or loss accruing on each relevant high value disposal.
  • Step 2, add together the amounts of any gains or losses determined under Step 1 (treating any amount which is a loss as a negative amount).

If the result is a positive amount, that is the non-resident CGT gain on the disposal of land.  If it is negative amount, that is the non-resident CGT loss on the disposal of land.

 

A definition is given of “section 14D chargeable day”, which is used in calculations in Sch 4ZZB/paras 13(4), 14(4) and 15(3).  It is a day on which the interest disposed of was wholly or partly a dwelling, but it is not an ATED chargeable day (as defined in paragraph 3 of Sch 4ZZA).