sale of shares

sale of shares

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Sale of shares in husband wife owned company (50/50); 100% sold to un-connected person.
Agreement is a payment up front of (say) £20,000. This was made on date of transfer of shares 29.03.2012 falling into 11/12 tax year.
Then buyer agrees to pay another £20,000 in 6 months time.
Ok, so I think, the whole £40,000 goes into 11/12. The 2nd £20k is not dependent on anything; it's just the guy needs to generate some money to be able to pay it!
But, what happens if the the other £20,000 is not (for whatever reason) actually paid?
This has all happened before they spoke to me so I was unable to say anything about dates etc..

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By gbuckell
30th Jul 2012 10:25

Deferred consideration

See TCGA 1992 s48.

Yes, the whole £40k goes into 11/12. If some or all of the £20k is not received, a claim can be made under s48 to revise the original CGT computation.

 

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