CG73650 - Dwellings subject to ATED: how ATED-related gains/losses are charged/relieved - marginal relief for gains
Where the consideration for a disposal exceeds the 바카라 사이트˜threshold amount바카라 사이트™ (see CG73620) by only a marginal amount, and the ATED-related gain on the disposal is relatively large compared with the disposal consideration, the capital gains tax liability could have a distorting effect. In extreme cases the seller could save money by reducing the selling price below the threshold amount, eliminating any liability to pay capital gains tax. To prevent this distorting effect occurring, TCGA92/S2F provides a form of 바카라 사이트˜tapering relief바카라 사이트™.
Under the section the ATED-related chargeable gain is restricted to an amount which is the lower of바카라 사이트”
- the full ATED-related gain and
- 5/3 times the difference between the consideration for the disposal and the threshold amount for that disposal.
Where only a proportion of the gain (the 바카라 사이트˜relevant fraction바카라 사이트™) is an ATED-related gain, the amount excluded from charge is reduced by the same proportion.
Example
The consideration for a disposal is £2.6 million and threshold amount for that disposal is £2 million.
5/3 of the difference between these figures (£0.6 million) is £1 million. If the whole of the gain on the disposal is ATED-related, the chargeable gain is capped at £1 million. If only part of the gain is ATED-related, say 4/10, the 바카라 사이트˜ATED-related바카라 사이트™ chargeable gain is capped at 4/10 × £1 million = £400,000.
The gain that is not ATED-related is unaffected by any restriction on the amount of the ATED-related chargeable gain.