Taxation of Chargeable Gains Act 1992 section 36A

Re-basing in relation to direct or indirect disposals of UK land

Section 36A introduces the re-basing rules that apply when non-UK residents dispose of interests in UK land (whether directly or indirectly) that were held on 5 April 2019, so that only gains or losses arising after that date are brought into charge.

• The re-basing rules apply to assets held on 5 April 2019 that are disposed of after that date, where the disposal is a direct or indirect disposal of UK land.
• Re-basing means the asset is treated as though it were acquired at its market value on 5 April 2019, so only the gain or loss arising from that date onwards is subject to UK tax.
• An indirect disposal of UK land includes, for example, the sale of shares in a company that derives 75% or more of its gross asset value from UK land.
• The detailed rules, including definitions, elections and computational provisions, are set out in Schedule 4AA to the Taxation of Chargeable Gains Act 1992.