Commentary

C2.107 Contingent consideration

Capital gains tax
Capital gains tax | Commentary

C2.107 Contingent consideration

Capital gains tax | Commentary

C2.107 Contingent consideration

Where an asset is sold for a consideration which includes the right to receive a sum to be ascertained and payable on a future contingency, the gain on the disposal of the asset is computed by taking into account the market value of that right at the date of disposal. When the right matures and the sum becomes payable there is a deemed disposal in respect of the receipt of the moneys on the extinguishment or redemption of the right1.

The amount which the purchaser ultimately pays in satisfaction of the vendor's right is treated as part of

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