Article 10 Sale of private residence under certain agreements with employer, etc

After section 225B of the Taxation of Chargeable Gains Act 1992 (inserted by article 9 of this Order) insert—

“Sale of private residence under certain agreements with employer, etc

225C

(1)

This section applies where—

(a)

an individual disposes of, or of an interest in, a dwelling-house or a part of a dwelling-house which is the individual’s only or main residence (“the initial disposal”),

(b)

the individual does so as a consequence of a change to the situation of the individual’s place of work or that of a co-owner of the dwelling-house or the interest, being a change that is required by the employer of the individual or the co-owner, and

(c)

the initial disposal is under a home purchase agreement.

(2)

If—

(a)

under the terms of the agreement the individual receives, within three years of the initial disposal, a share of any profit made by the purchaser upon the purchaser’s disposal of, or of an interest in, the dwelling-house or part of the dwelling-house, and

(b)

the receipt of that sum would be treated (apart from this section) as a disposal falling within section 22 (disposal where capital sums derived from assets),

that receipt shall be treated for the purposes of this Act as a gain attributable to the initial disposal but accruing to the individual at the time the sum is received.

(3)

In this section—

• “home purchase agreement” means an agreement—

  1. (a)

     made with the employer or a person operating under an agreement with the employer (“the purchaser”),

  2. (b)

     which includes a term entitling the individual to receive a share of any such profit as is mentioned in subsection (2)(a);

• “co-owner”, in relation to any individual (“A”), means another individual who holds an interest jointly or in common with A, whether or not the interests of the co-owners are equal.”.

The amendment made by this article has effect in relation to disposals on or after 6th April 2009.