It is very common in commercial transactions for completion of a contract to be conditional on certain future events. For example a sale of shares in a company may be conditional on the obtaining of clearance from a regulatory body and the sale of real estate may be subject to the obtaining of planning permission. With a potential increase in the rate of CGT taxpayers will be concerned about whether the date of their disposal is when the contract is entered into or when the conditions are satisfied and the contract completes given this may affect the applicable rate of CGT. As we discuss below the position requires an in-depth analysis of the terms of the contract and the relevant condition.
Under TCGA 1992 s 28(1) for CGT purposes the time of disposal of an asset under a contract is the time the contract is...
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It is very common in commercial transactions for completion of a contract to be conditional on certain future events. For example a sale of shares in a company may be conditional on the obtaining of clearance from a regulatory body and the sale of real estate may be subject to the obtaining of planning permission. With a potential increase in the rate of CGT taxpayers will be concerned about whether the date of their disposal is when the contract is entered into or when the conditions are satisfied and the contract completes given this may affect the applicable rate of CGT. As we discuss below the position requires an in-depth analysis of the terms of the contract and the relevant condition.
Under TCGA 1992 s 28(1) for CGT purposes the time of disposal of an asset under a contract is the time the contract is...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
