IFM25005 - Real Estate Investment Trust : Capital gains: general : CTA2010/S535 and S535A

Exemption from tax of gains 

As well as exempting property rental income from tax, gains made on assets that are used in the property rental business (IFM25006) and, for accounting periods beginning on or after 6 April 2019, on disposals of UK property rich companies (IFM25007) are not chargeable gains (CTA2010/S535 and S535A). If such a disposal results in a loss, that loss will not be an allowable loss (TCGA1992/S8(2)). 

The amount of gain or loss on any disposal is calculated following the normal rules in TCGA, including indexation. Other terms and expressions used in connection with the calculation also take their meaning and interpretation from TCGA given CTA2010/S535 and S535A are “to be read as if contained in TCGA1992” (CTA2010/S535(9) and S535A(9)).