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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: Post April 2015 assets and retrospective basis of computation, examples

  1. Asset acquired after April 2015

 

  1. Election for retrospective basis of computation made

 

These examples follow on from examples in the ATED-related CGT guidance. They show how to calculate the NRCGT gain or loss on those disposals after calculating the ATED-related gain or loss.

 

  1. Asset acquired after April 2015

 

Shows how to calculate the NRCGT gain on example 2 at CG73634

 

Basic information:

Residential property acquired October 2015 for £1,500,000 and disposed of April 2018 for £2,500,000.

Estimated Indexation factor October 2015 to April 2018     0.20

Total number of days chargeable to ATED 730        

Total days October 2015 to April 2018 913  

From CG73634 non-ATED related gain £140,307

 

 

 

Step 2

 

Determine the “special fraction” of the gain or loss

 

SD = 913

TD = 913

 

SD/TD x gain =           £140,307

 

NRCGT gain £140,307

 

  1. Election for retrospective basis of computation made

 

Shows how to calculate the NRCGT gain on example at CG73640

 

Basic information:

Residential property acquired April 2006 for £3,000,000 and disposed of April 2016 for £6,000,000. Election under paragraph 2(1)(b) Sch 4ZZB or paragraph 5 Sch 4ZZA made.

 

Estimated Indexation factor April 2006 to April 2016 0.4

Total number of actual chargeable days and pre April 2013 ATED days 1,825

Total days 3,650

 

Step 1

 

Determine the amount of gain or loss

 

Disposal proceeds                   £6,000,000

Acquisition cost                      £3,000,000

Indexation allowance              £1,200,000

Gain                                        £1,800,000

 

Step 2

 

Determine the “special fraction” of the gain or loss

 

SD = 1,825

TD = 3,650

 

SD/TD x gain =           £900,000

 

NRCGT gain £900,000

 

 

See CG73894 for how to calculate the gain or loss that is neither ATED-related nor an NRCGT gain or loss.