CG73788 - Non-Resident Capital Gains Tax (NRCGT) 鈥� Disposals on or after 6 April 2015 to 5 April 2019: Individuals: Special rules, and computation: Election for 'straight-line time apportionment' basis of computation
Sch 4ZZB/para 8 modifies the computations at Sch 4ZZB/paras 6 and 7 where a person held an asset at 5 April 2015 and makes an election under para 2 for the amount of post 5 April 2015 gain or loss to be determined by using the straight-line time apportionment method.
Where the person has made a non-resident CGT disposal of (or of part of) an interest in UK land in those circumstances, the legislation disapplies the 鈥渘otional post-April 2015 gain or loss鈥� and 鈥渘otional pre-April 2015 gain or loss鈥� under Sch 4ZZB/para 5(2)(a) and (b) that would have been used in a computation based on the default method. A different process is used to arrive at figures for 鈥渘otional post-April 2015 gain or loss鈥� and 鈥渘otional pre-April 2015 gain or loss鈥� to be used in the calculation under Sch 4ZZB/paras 6 / 7. The procedure is as follows:-
- Step 1, determine the amount of the gain or loss which accrues on the disposal. (For this purpose no account is taken of Sch 4ZZB - or TCGA92/S57B, the provision which introduces Sch 4ZZB - apart from Sch 4ZZB/para 23, Indexation.)
- Step 2, an amount equal to the post-commencement fraction of that gain or loss is the notional post-April 2015 gain or loss.
- Step 3, an amount equal to the pre-commencement fraction of that gain or loss is the notional pre-April 2015 gain or loss.
The 鈥減ost-commencement fraction鈥� is -
PCD
TD
where 鈥淧CD鈥� is the number of days in the post-commencement ownership period, and 鈥淭D鈥� is the total number of days in the ownership period.
The 鈥減re-commencement fraction鈥� is -
TD - PCD
TD
鈥淥wnership period鈥� is the period from the day the person acquired the interest disposed of (or, if later, 31 March 1982) to the day before the day on which the disposal occurs. 鈥淧ost-commencement ownership period鈥� has the meaning given by Sch 4ZZB/para 6(5) - the period from 6 April 2015 to the day before the day of the disposal.
The non-resident CGT gain or loss is therefore the proportion of the post 5 April 2015 gain that reflects the amount of days in the post 5 April 2015 period in which the asset is used as a dwelling; and any mixed use on the same day is similarly apportioned.