Taxes Consolidation Act 1997 section 649A

Relevant disposals: rate of charge

Section 649A sets out the rates of capital gains tax applying to disposals of development land, including reduced rates for certain disposals of residential development land made before 1 December 1999.

• Gains on disposals of development land are charged to CGT at 33% for disposals made on or after 6 December 2012; the rate was 40% for disposals in the period 3 December 1997 to 30 November 1999.
• A reduced 20% rate applied to certain pre-1 December 1999 disposals of residential development land, including disposals to housing authorities, the National Building Agency, and disposals of land with planning permission or zoning for residential use.
• The 20% rate did not apply where the disposal was between connected persons or where the sale contract was conditional on obtaining planning permission for non-residential development.
• Residential development is broadly defined to include ancillary development necessary for the proper planning and development of the area, such as shops, schools, churches, and estate roads.