CG73798 - Non-Resident Capital Gains Tax (NRCGT) 바카라 사이트“ Disposals on or after 6 April 2015 to 5 April 2019: Individuals: Special rules, and computation: Cases where asset acquired after 5 April 2015, or election made for retrospective basis of computation, examples
1. Election made for retrospective basis of computation
2. Asset acquired after 5 April 2015
1. Election made for retrospective basis of computation
Basic information:
Interest acquired 6 April 2006 for £300,000 and disposed of 5 April 2017 for £280,000
Half of the building was used as a dwelling throughout the ownership period and the other half was used for a commercial purpose
Election made under Para 2(1)(b)
Total number of days in ownership period 4,017
Total numbers of days where the property was used wholly or partly as a dwelling 4,017
Calculating the NRCGT gain or loss
Step 1 바카라 사이트“ Gain or loss on disposal
Disposal proceeds £280,000
Allowable deductions £300,000
Loss on disposal £20,000
Step 2 바카라 사이트“ Relevant fraction of gain or loss
RD = 4,017
TD = 4,017
RD/TD x loss on disposal = £20,000
Step 3 바카라 사이트“ Apportionment for mixed use of building
This step is not necessary if there is no mixed use of the building.
As half of the building has been used as a dwelling, the appropriate fraction using a just and reasonable apportionment is 1/2. This is for illustrative purposes only 바카라 사이트“ in a real situation establishing the appropriate fraction is likely to be more complex.
1/2 x relevant fraction of loss on disposal = £10,000
NRCGT loss £10,000
Calculating the gain or loss which is not an NRCGT gain or loss
Step 1
Not relevant is there is no NRCGT gain
Step 2
Loss on disposal (£20,000)
NRCGT loss (£10,000)
Loss remaining (£10,000)
Loss which is not an NRCGT loss (£10,000)
Summary
Total loss throughout ownership period £20,000
(Disposal proceeds of £280,000 less allowable deductions of £300,000)
Divided into:
NRCGT loss £10,000
Loss which is not an NRCGT loss £10,000
2. Asset acquired after 5 April 2015
Basic information:
Interest acquired 6 April 2016 for £200,000 and disposed of 5 April 2017 for £300,000
Wholly used as a dwelling throughout ownership period
Total number of days in ownership period 364
Total numbers of days where the property was used wholly or partly as a dwelling 364
Step 1 바카라 사이트“ Gain or loss on disposal
Disposal proceeds £300,000
Allowable deductions £200,000
Gain on disposal £100,000
Step 2 바카라 사이트“ Relevant fraction of gain or loss
RD = 364
TD = 364
RD/TD x gain on disposal = £100,000
Step 3
Not relevant as there is no mixed use
NRCGT gain £100,000
Calculating the gain or loss which is not an NRCGT gain or loss
Step 1
Gain on disposal £100,000
NRCGT gain £100,000
Gain remaining £0
Step 2
Not relevant is there is no NRCGT loss
Gain which is not an NRCGT gain £0
Summary
In this example the whole of the £100,000 gain is an NRCGT gain, as the property was used wholly as a dwelling throughout the ownership period, and the whole ownership period falls after 5 April 2015.