CG73620 - Dwellings subject to ATED: relevant high value disposal: condition D - the threshold amount
Condition D for a disposal to be a 바카라 사이트榬elevant high value disposal바카라 사이트� is that the consideration for the disposal exceeds the 바카라 사이트榯hreshold amount바카라 사이트� for that disposal. TCGA92/S2D sets out how the threshold amount is determined.
The basic threshold amount is:
拢2,000,000 where the disposal is on or after 6 April 2013
拢1,000,000 where the disposal is on or after 6 April 2015
拢500,000 where the disposal is on or after 6 April 2016
The threshold amounts above apply where the person to whom the gain or loss accrues disposes of the whole of the 바카라 사이트榮ingle-dwelling interest바카라 사이트� and has made no previous 바카라 사이트榬elevant related disposals바카라 사이트� (see below). The threshold amount will be聽less聽where바카라 사이트�
- either the person has only a fractional share of the single-dwelling interest
- or the person disposes of only part of the interest they hold, or have held
- or both (a) and (b) apply.
Disposal of fractional share
Where the disposal is of the whole of a person바카라 사이트檚 fractional share either in the whole of an interest or in part of an interest (that is, where the interest or part of the interest is jointly owned, for instance by a partnership), in these cases the amount is reduced by reference to the person바카라 사이트檚 fractional share.
For example, if a person has a 75% share in the chargeable interest (and there is no additional reduction because the disposal is a partial disposal, see below), the figure is reduced to 75% of聽the figure e.g. 75% of 拢2 million = 拢1.5 million.
If a partner has a 50% share in the assets of a partnership which owns a half-share in a property, the聽figure is reduced e.g 拢500,000 (50% x 50% of 拢2 million) because the partner has a fractional share in part of an interest.
Partial disposal
Where the disposal in question is either a disposal of part of the person바카라 사이트檚 chargeable interest, or where there has been one or more 바카라 사이트渞elevant related disposals바카라 사이트� the threshold amount is the amount given by the fraction:
C/TMV 脳 the basic threshold amount, or the reduced amount if it바카라 사이트檚 a disposal of fractional share, see above
C is the amount or value of the consideration for the disposal. This is the amount determined under the normal TCGA rules, with one exception.
The exception occurs where a company which is a member of a group of companies disposes of the interest to another company in the same group. TCGA92/S171 (2) (ba) prevents the disposal from being treated as one made at 바카라 사이트榥o gain/no loss바카라 사이트� value (see CG45320). An additional effect is that it is not possible for companies to elect under TCGA92/S171A to treat the gains or losses accruing on the disposal to be treated as accruing to another member of the group (see CG45355). Instead the disposal and acquisition are treated as made at market value under the rule for transactions between connected persons (TCGA92/S17 and S18, see CG14560+). So in these cases, C is the market value of the asset transferred rather than the amount or value of the consideration.
TCGA92/28 will determine the time at which TCGA92/17 applies.
TMV is the Total Market Value, as at the time of the partial disposal, of a notional asset consisting of바카라 사이트�
- the disposed of interest, plus
- if the disposal is a part disposal, the remaining part of the chargeable interest, plus
- any chargeable interest (or part of a chargeable interest) which was the subject of a 바카라 사이트榬elevant related disposal바카라 사이트� (see below), or would have been the subject of a relevant related disposal if the person making the actual disposal had disposed of that interest at the time.
By using 바카라 사이트楾MV바카라 사이트� in the fraction C/TMV, we ensure that the threshold amount is reduced to take account of any part of the single-dwelling interest which is retained and any part which has been disposed of previously.
Examples: If the person disposes of the whole of a single-dwelling interest and the C/TMV fraction is 40%, the threshold amount for that disposal is 拢2 million 脳 40% = 拢800,000. If the person had only a 75% fractional share the threshold amount would be 拢2 million 脳 75% 脳 40% = 拢600,000.
Relevant related disposals
A 바카라 사이트榬elevant related disposal바카라 사이트� is any chargeable disposal made in the period of 6 years ending with the date of the current disposal. It is a chargeable disposal if바카라 사이트�
- it is a disposal by the same person,
- the disposal meets conditions A to C in section 2C, see CG73616-19, and
- it is a disposal of
- part of the same single-dwelling interest as the one that is the subject of the current disposal, or
- the whole or part of a different single-dwelling interest in the same dwelling.
Disposals within the 6 year period which are made before 6 April 2013 are excluded.