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CGT instalments and ER

Taxpayer has a £3m gain on sale of shares, qualifying for Entrepreneurs relief.

£2m paid immediately , £1m over two instalments at + 12 months and + 24 months.

Consideration is ascertainable.

Q - is there any Entrepreneurs relief restriction if an election under TCGA S280 to pay by instalments is made.

My colleague thought there was, but my research today can't find anything confirming this.

My colleague may be thinking of a Marren v Ingles unascertainable situation though, where loss of ER on the deferred earn out right is a known issue.

My conclusion is that for a straightforward payment by instalment arrangement, ER isn't compromised by TCGA S280 claim to pay by instalments.

Any quick thoughts from the floor?


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no restriction

There is no restriction of ER when CGT is payable by installments.

Marren v Ingles does not apply because consideration is ascertainable.

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Thanks very much both of you!

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Too much cash

Whilst I agree that ER can apply I do not see how s280 can apply in this situation. HMRC's view found at is that at least 50% of each cash instalment should be paid in tax until the tax is paid in full. The tax cannot be more than £300k which is much less than 50% of the first instalment.

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Too much cash - indeed

Concentrating too hard on the main point of the question, missed the amounts!

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Thanks - figures were rounded, will do the maths on actuals.

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