The following Tax guidance note provides comprehensive and up to date legal information covering:
For a taxable capital gain to arise, there has to be a disposal, or a deemed disposal, of an asset. The taxpayer will need to establish when the disposal took place. This will determine when the tax must be paid, and in some cases will also decide:
the amount of tax
who has to pay it, and/or
whether it is payable at all
This Practice Note describes the timing rules that apply to:
assets that are disposed of under a contract
deemed disposals, and
options and forfeited deposits
In this Practice Note CGT means both capital gains tax and corporation tax on chargeable gains.
The general rule is that when an asset is disposed of under an unconditional contract, disposal is treated as taking place at the time when the contract is made. This applies even if the asset is actually transferred at a later date. For example, when land is sold there is normally a contract, followed, at some later date, by a legal transfer. For CGT purposes the land is treated as having been disposed of on the date of the contract.
The corresponding acquisition of the asset by the buyer is also treated as taking place at the time when the unconditional contract is made. However, in the case of an acquisition by an individual of
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Take a free trial
0330 161 1234