Tony Greer
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Capital Gains - what happens if the vendor repossesses the asset

Capital Gains - what happens if the vendor...

Land sold in April 2012, payment in tranches but it looks like the buyer won't be able to pay as development not sold.

Vendor (my client) holds first charge over land and will repossess in due course.

If the gain is declared in his self assessment return, what happens when he repossesses - do we file amended return or is it settled another way?

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22nd Jan 2013 15:16

This looks like...

. a straightforward application of s48 TCGA,

The land has been disposed of in April 2012 for a specified price (even if that price is payable in tranches). That price is used to calculate the capital gain arising on the disposal.

If any part of the price "subsequently proves to be irrecoverable" a claim can be made for "such adjustment, whether by way of discharge or repayment of tax or otherwise, as is required".

 

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