Rebekka Sandwell and Colin Askew (Eversheds Sutherland) consider the use of ‘conditional contracts’ in order to benefit from pre-Budget CGT rates.
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...
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Rebekka Sandwell and Colin Askew (Eversheds Sutherland) consider the use of ‘conditional contracts’ in order to benefit from pre-Budget CGT rates.
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...
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