Disposal of UK land by non-UK residents and illustration

In this lesson

1. 0:00 Disposal of UK land by non-UK residents
2. 0:09 Residential land: CGT rules from April 2015
3. 0:20 Non-residential land: CGT rules from April 2019
4. 0:44 Calculating gains: automatic method vs election
5. 1:52 Worked example: Tom's factory disposal
6. 3:08 When to elect for original cost method

About this lesson

You'll work through a practical illustration showing how to calculate the chargeable gain using two methods — the automatic rebasing approach and the original cost method — so you can advise clients on the most tax-efficient choice. The key dates to remember are 5 April 2015 for residential land and 5 April 2019 for non-residential land. These mark when the charge to UK capital gains tax begins for non-UK residents. If you bought non-residential property before 5 April 2019, you have the option to elect whether to use the market value on that date as your cost base or stick with your original purchase price. This choice can make a significant difference to the gain you're taxed on. Through Tom's example, you'll see how to apply both calculation methods and make a reasoned recommendation. This is essential exam technique for ATX and SBR questions where you're expected to identify the most advantageous position and explain your reasoning clearly.

Duration: 3m