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Section 151Y: Diminishing shared ownership arrangements : further provision

Taxation of Chargeable Gains Act 1992 · 1992 c. 12View on legislation.gov.uk

Part IV: Shares, securities, options etc. — Chapter 4: Alternative finance arrangements

Diminishing shared ownership arrangements are not treated as a partnership for capital gains tax purposes.

If, under diminishing shared ownership arrangements, the financier grants a lease of the asset to the customer, the grant or termination of the lease is not to be treated as a disposal or acquisition of part of the asset for the purposes of this Act so far as it applies for capital gains tax.

If, under diminishing shared ownership arrangements, the financier is entitled to the asset as a result of the customer breaching an obligation under the arrangements—

the financier's dealings with the asset for the purpose of enforcing or giving effect to the entitlement, and
the dealings with the asset of any person appointed for that purpose,

are to be treated for the purposes of this Act so far as it applies for capital gains tax as if they were done through the financier, or (as the case may be) the appointed person, as nominee by the customer.

In this section—

  • "the asset" means the asset in which beneficial interest is acquired and disposed of under the diminishing shared ownership arrangements;

  • "the customer" and "the financier" have the same meaning as in section 151K or 151KA;

  • "termination", in relation to a lease, has the meaning given by section 70YI of CAA 2001.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.